Earlier quoted context omitted.
Even more awesome: Skip the extra Arduino and use the ESP8266 as your Arduino. https://github.com/esp8266/Arduino
I realise how silly this question may seem but here we go: If I get an ESP8266, I can have something that run code, sit on my home network wirelessly and use it to do things like report on sensor inputs? Am I missing some larger expense that would be required as this seems very cheap compared to other options I've seen.
Just be careful not to connect the 5V VCC to the ESP8266, it will probably kill it.