I saw a story about this earlier today, and it seemed like a good idea. Then the Beeb investigated the matter... I don't want to set fire to my kitchen...
I throw my dishes in the dishwasher and use paper towels on the countertops. Sponges are gross. I only bother with them on heavy-duty scrubbing jobs like removing 3 month's worth of body filth sediment from the floor of the shower.
I also haven't used a sponge for quite some time. For stubborn dishes I just use a handy scrubbing brush with a plastic wedge to lift anything truly caked on. I'm sure some will see it just as gross as sponges, but at least I don't have to touch the cold, soft, germ infested end. The rest is all paper towels.
The trick is when the sponge catches fire in the microwave- LEAVE IT IN THE MICROWAVE! It ain't going anywhere and the fire won't spread from there. Same thing with those frying pan fires. The big fire always starts when someone, in a panic, tries to whip it over to the sink or somewhere and winds up splashing burning stuff all over the place. Leave it on the frakkin' stove and let it burn!
Until someone comes up with a gel, topical ointment,or technique that kills that last %.1 of bacteria, I'm just gonna keep washing my hands and rags with plain old soap.
I've had a paper towel catch fire in the microwave. Easiest ways to avoid that stuff catching fire is to get it a bit wet before putting it in, and leaving it in no longer than a minute.