Proxmox sounds like it fits their use case , it’s a useful and tweakable solution, and because it’s based on KVM you can pass through hardware with IOMMU. Personally, I run Proxmox on my (admittedly not very good) home server with like 12 gigs of ram and a processor from the early 2010s, handles a few VMs just fine with hardware passthrough to a TrueNAS VM. I do run a lot of my micro services on some cheap thin clients (DNS mainly) for redundancy as I mentioned, they were cheap. Home Assistant OS is happy on Proxmox as is Jellyfin with hardware acceleration.