Early touch button televisions used this technology, and it was superb until you introduced human being to the TV sets, dirt from fingers was the biggest problem followed by static electricity from carpets, female underware etc. After spending hours trying to cure these problems i now give this type of switch a wide berth.
What would it be used for? There are a lot of different applications for this technology.
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"Blessed is the man who, having nothing to say, abstains from giving us wordy evidence of the fact." George Eliot [Mary Ann Evans] (1819-1880)
Many of the deficiencies of capacitive switches have been resolved with electronic design and shielding techniques that shunt electrostatic discharges as well as incorporate the stray capacitance field through a capacitive charge pump principle or using "driven shields" to negate extraneous load capacitances that inhibit the sensitivity of the sensing circuit. There are a myriad of uses for capacitive switches, mainly used in industrial applications to sense the level of liquids through tanks, pharmeceuticals, powders and for nano measurement devices in the new field of nanotechnology. Companies such as Quantum Research Group www.qprox.com) and Cypress Semiconductors and Touch Sensors are using their technology for the "touch" sensing market for smart appliances, PDA,s IPODs and cellphones. Capacitive switches belong to the field of capacitive sensing and is also known as "electric field" sensing. It's an interesting phenomenon which uses the electric field of a near 0 current electomagnetic field (used for RF).