The design of the cross-connect panel is very critical to achieving the functionality promised by a structured cabling system. Below is a home network schematic showing how very central the cross-connect panel is. This is a very general diagram, and it should be noted that certain enhancements might be made to achieve security protection from the big bad Internet. If nothing else, there should at least be personal firewall software installed on every network-connected computer. See for example the BlackICE Defender product.
CERT is a good source of more information on home network security.
While broadband Internet access tends to make home networking more desirable, it does not require it. In particular, many people seem to think that DSL service needs some sort of special care within the house. DSL installation showing that this is not the case.