I haven't really worked with 'domestic' systems, but used to be responsible for certain large
industrial and
commercial multi-story control systems. Although (as some people mentioned)
P.I.D. (Proportional, Integral
& Derivative) controllers can 'smooth' things out and make cooling/heating valves more efficient,
'Hysteresis'
is most important in that regard when it comes to energy saving! (
More on that shortly)...
However, the main problem is
Common Heating/Cooling calls!! We can't have a situation where just one
sensor/setpoint in just one zone/room/floor, (which may have say a warm computer too close to it!), for being
responsible for starting say a whole buildings Chiller-Plant or Boiler. That requires a pre-programmed number
of sensors, and pre-programmed time delays at times. Otherwise, arses are kicked!!

Regarding
Hysteresis, that is a two-pronged attack!! One is the cycling on/off Range, either heating or cooling,
but the other is '
Time Of Year Perception' !! I don't know what other colder countries do, but here in Australia,
'experts' have determined that in our Winter, let's say it's say a 'freezing' (haha..)
14-deg-C outside, then the
general public/workers actually feel comfortable with a cycled range inside, of say
18-21 deg-C. And when it is
say
34-deg-C outside, people are comfortable/happy when the cycled range inside is say
25-28 deg-C inside!!

The happy 'Norm' here, is calculated to be 23-deg-C, but maintaining that will cost the owner Heaps!
I'lll throw in one other factor, which is where a 'Company' is the sole multi-story owner/occupier, and where the
building is almost totally sub-letted to numerous other paying tenants!!! If it is a case of the 'latter' here, then the
owners have the control of
all the metering, and
re-sell the power to all the tenants, making a huge profit there!!

You try to talk about energy management to them, and they just laugh!! (True!).