It is Biblical and wise.
Reasons such as money, intimacy, interaction, etc. are all valid.
However, are people validly ordained as elders and deacons because of someone who declared them such, or are they valid elders and deacons because they meet the Scriptural requirements for the position?
For instance, if a group of believers Biblically determine that the "traditional" churches in their area have forsaken the Biblical model of the church (we'll assume they are correct in their judgment), then shouldn't they be able to begin fellowshipping together and elect their own elders based on Scriptural guidelines? Or, were the posts concerning self-ordination referring to people who suddenly declare themselves elders?
Regarding the growth issue, it may be beneficial to determine at the outset to multiply the church by division base on geographical location if the group grows to a certain number. Although, this could be cause for heartache, and a rented (or even owned) location isn't necessarily forbidden in the Scripture.
Regarding the interaction and exercise of gifts, I think this type of format would better allow us to spur one another on towards love and good works. I understand that many traditional style churches allow plenty of time for intimate interaction; however, I think it is safe to say the majority don't. The typical American "rush out of church to get to lunch" mentality is hindering godly growth. If the brothers and sisters engaged in rich spiritual interaction before and after worship, I think we would see much growth in grace and knowledge of the Lord.
I almost feel the same way with regards to family worship... Those things (nik-naks, lava lamps, photo's on wall, etc) are distractions to worshipping even in a family setting...
Sometimes I feel just about getting a separate small room set aside for the family worship area where are no distractions of any kind... As you put it "Whitewashed"...
With all respect brothers, can we really go from "I personally think..." to saying "the host may need to..."? The burden of having to completely remove all the person's belongs from a room in order to create a pristine worship environment is foreign to the Bible. Now, I could understand if they had some blinking pin-ball machine, but what nik-naks are you referring to? Obviously, you are free to do what you please in your own family worship; however, can we make good case for requiring this in a house church setting?