VMs on a server are great fun, and there are some use cases where you’d absolutely need them (as parent said, running Windows on a Linux server, etc). I virtualized my whole-network router using virtualized OPNSense which is BSD based.

If you aren’t into spending time (and, eventually , money) on a setup that does “everything”, you don’t need Proxmox.

But it’s fucking AWESOME for tinkering. I think the question to ask yourself is, do you want a homelab, or do you want to just set-it-and-forget-it?

If you want services to be there without spending time on it, keep it simple. If you want the power that added complexity brings, and you have the means (time/energy/maybe money for upgrades etc) then by all means take the leap. It’s fun as hell, if you’re into it.