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

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This… It is ease vs control. If you have needs inside the box Proxmox has planned for, it is very easy. But if you want to step outside that box, you are in for a world of surprise. I install Proxmox for clients that do not have solid Linux chops. I run KVM/libvirt on my own stuff. And if you need a web front end, oVirt exists…

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