A lot of research is still going on in finding effective and of course low cost localization algorithms in Wireless Sensor Networks, especially in very noisy/obstructed environments.
We all know the mantra that RSSI based localization scheme is not very effective. So, finding an effective RSSI based localization scheme is a very good area of research.
indoor localization , say a node is missing or not transmitting , finding path alternatively to base station , identitying it can be research work to begin with
Yes, indoor localization is a promising research field. An interesting competition on accurate indoor localization can be found here: http://ipsn.acm.org/2015/competition.html
Obtaining indoor location in WSNs is important. However, it is difficult to deploy a real and long-term WSNs. I guess cooperations between certain types of AP and smartphones might be a solution for indoor localization in the future.