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The vision of the Internet of Things (IoT) poses chances and challenges for participatory design. In this paper, we report experiences from a research project that is building a system for supporting the autonomy of elderly users at their homes at well as in their neighborhoods. The complexity and invisibility of the underlying technological infrastructures made it challenging to engage potential users in constructing legitimate third spaces for co-design and led us to adapt our initial approach. Based on a discussion of our experiences we argue that the increasing complexity of both the problem as well as the solution space in the age of the IoT has implications for Participatory Design (PD) approaches and hint towards future research directions.