It would be great to have a system installed in your home where you could just place any type of waste in and it would sort it out by itself. Just like you place rubbish in your rubbish bin one by one now, the machine would instantly sort that item out and put it under the right category. It might even do some separation, detaching one type of plastic from another, or carton from plastic on the same package, etc., but even without the latter function, it would be very useful. Different types of waste would then be "flushed down" through different tubes to the base of the building where they would be stored in large separate containers and taken out to recycling facilities regularly. There are already those kinds of tubes for general waste installed in some apartment buildings. Compostable waste could be used to provide soil for indoor plants in the same house or also brought to larger composting containers and used somewhere else.
There are already mechanized systems capable of optical sorting of different types of waste, it would take to make them into a compact enough (say the size of a washing machine) device to make it convenient enough for domestic use.