Being a noob and all I was wondering whats the real benefit of having a monolithic lets say proxmox instance with router, DNS, VPN but also home asssistant and NAS functionalitiy all in one server? I always thought dedicated devices are simpler to maintain or replace and some services are also more critical than others I guess?
Having as much on one machine as possible has efficiency and maintenance benefits since you have less machines to configure. The drawback is that multiple services can add up peak demands and run the machine oom which you can either solve by leaving extra headroom or make them redundant imo.
Someone with more experience than me might have other ideas to add.