You asked about the use of "with" and "as", and you gave the following example use of "as":
"As th technology improves, smart clothes will get much smarter."
Yes, you are correct. After "as" we can use a clause (a subject+finite verb+complement), whereas after "with" we can have a noun or noun pharse. " As" (in your example) is a conjunction meaning "while";CONJUNCTIONS, you will recall, are for joining clauses to the rest of the sentence. "With" is a preposition;PREPOSITIONS are for joining nouns to the rest of the sentence.
No. these two words normally cannot be used interchangeABLY. But in your example, we could use either to express a similar, as follows:
"AS the technology improves, smart clothes will get much smarter."
"WITH the IMPROVEMENT OF technology,smart clothes will get much smarter."