So, this is cool. Mike Hall, did a great job at introducing this technology at MEDC, however strangely the press didn't pick it up.
Seeing the video again. I have to say again 'WOW', small low powered devices announcing themselves to your home network and exposing an API via web services. Video at -
http://blogs.msdn.com/mikehall/archive/2007/08/08/medc-keynote-consumer-video-netmf-windows-ce-xpe-vista-and-wsd.aspx
Imagine buying a washing machine with no front buttons but magically your fridge mounted flat-screen presents a beautiful touch screen control panel for every wash you're likely to need...
The documentation on MSDN is a little C++ and hardware focused (IMHO) , at - https://msdn2.microsoft.com/en-us/library/bb410236.aspx
I've often needed to control devices remotely like weighbridge's, pressure testers and other line of business hardware WSFD could make my life much easier.
I wonder how long it will be before we can implement this all from the Compact Framework? I feel a pet project coming on to implement calling web-services on devices myself (however the auto-discovery and stuff looks a bit tricky)