It depends on your goals of course.

Personally, I use Proxmox on a couple machines for a couple reasons:

1. It’s way way easier to backup an entire VM than it is to backup a bare metal physical device. And when you back up a VM, because the VM is “virtual hardware” you can (and I have) restore it to the same machine or to brand new hardware easily and it will “just work”. This is especially useful in the case that hardware dies.
2. I want high availability. A few things I do in my homelab, I personally concider “critical” to my home happiness. They aren’t really critical, but I don’t want to be without them if I can avoid it. And by having multiple proxmox hosts, I get automatic failover. If one machine dies or crashes, the VMs automatically start up on the other machine.

Is that overkill? Yes. But I wouldn’t say it “doesn’t make sense”. It makes sense but just isn’t necessary.

Fudge topping on ice cream isn’t necessary either, but it sure is nice.

I do something similar:

Incoming traffic -–[https traffic]—> reverse proxy -–[https traffic]—> real services (emby, etc).

The traffic from my browser to the reverse proxy is encrypted with TLS certs from letsencrypt. Whenever possible (it usually is), I configure the real services to expose HTTPS endpoints even if they are just with self-signed certs. That way the proxy-to-service traffic is also encrypted.