A few months ago we have organized the CIoT workshop at Pervasive 2010. Together with 25 participants we discussed mobile applications using Twitter and Facebook to facilitate urban interactions, opportunities for user innovation, as well as changing perceptions of privacy.
Throughout the workshop, we asked the participants to think of issues and aspects relating to citizens and IoT write them on sticky notes. The entire group then organized the notes and clustered them into topics. The resulting clusters were crowd-sourcing, system design, business models, and privacy. As a consensus we derived that research should not only on development but also on deployment in order to evaluate the use of systems.
For more details see our workshop report in the current issue of IEEE Pervasive Computing .
 What Can the Internet of Things Do for the Citizen? Workshop at Pervasive 2010, F. Michahelles, S. Karpischek, A. Schmidt. IEEE Pervasive Computing, vol. 9, no. 4, pp. 102-104, Oct.-Dec. 2010, [PDF, doi:10.1109/MPRV.2010.88].