Yes, it is possible to use this technology to monitor changes in the environment and estimate the level of activity in the room. However, it would still be a challenge to accurately determine whether or not the room is occupied based solely on the Wi-Fi signals. For example, an empty room with no one in it would still have Wi-Fi signals bouncing around from neighboring areas, making it difficult to distinguish between an empty room and one that is simply unoccupied at the moment.

As for whether or not this work could be done by the router itself, it is certainly possible that routers in the future may be equipped with sensors and machine learning algorithms to perform this kind of analysis. However, such technology would likely require a significant amount of processing power and memory, which may not be feasible for low-end routers or routers with limited resources. Additionally, there may be privacy concerns associated with such a system, as it could potentially be used to monitor people's movements and activities without their knowledge or consent.
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