Once upon a time I had a little intel j1900 box with esxi on it, running pfsense in one vm and ubuntu + docker in another.
that lasted right up until I broke it, and seperated the two out again, having a home NAS and a ubiquity UDM instead for a router.
Life was too short to juggle that setup.
Similar story here, it's a great idea until it goes wrong, then you've got two appliances down instead of one.
My Home Assistant instance has become so mission critical to my household that I've got a dedicated Pi 4 for it, with a fallback Pi 4 and preflashed SD card ready to hot swap and restore from backup.
Yeah I think that's pretty much a universal story: you consolidate things until it breaks, at which point it's impossible to fix anything because absolutely everything is broken all at once.
Routing should probably be separate hardware for most people, as should DNS (if you're running your own) and then you can probably lump most everything else on a single server or so.
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