If you had a parallel port then you could support at least 8 LEDS, although I would think that simple on / off control would only suffice for school projects in my estimation.
More intresting, and more usefull would be to include a software / hardware abstraction layer (a specification including a series of functions) to allow for any type of of control to be bolted on afterwards to support control in the real world. This isolates the overall control from the nuts and bolts of manipulating hardware. Then you could use a graphical indication scheme (mimic) on the display. Even nicer would be mood lighting (colour and brightness) and specific memorised settings. Even the most basic building management systems now include movement sensors. But how about building activity simulation, security simulation (eg. fooling people into thinking there is someone at home) and don't forget external lighting. A modern living room can have around six or more lights so don't think too small.
Just a little story on how I grew to hate one of these systems. I lectured in a school for a while and the building had one of these automated energy saving systems installed. During the winter, if I had set the class an exercise and sat down to mark for a while, it used to turn off the lights, leaving us all in the dark!

. It's hard wok being on your feet for 2 hours at a time

. So how long, is long enough...? depends on the usage characteristics hint hint.