Are there any benefits of running Proxmox and virtualizing everything, vs having a host OS and running Docker and libvirt to host VMs for services that need it? I know that Proxmox does some storage management etc, but it seems like I could get everything it does with a well-managed host OS + ZFS/btrfs and using virtualization tools
Running Home Assistant OS in a virtual machine using the provided VM images is a supported configuration.
From ADR-0015: Installation Method: Home Assistant OS:
Supported != To recommend