I steered away from replacing my router with a PC and got an ER-X and virtualized everything else including TrueNAS on an old office PC. Having PCI-E slots helps with stability a ton when virtualizing and my setup has 64gb DDR3 which was cheap.
Ubiquiti APs are typically the homeLab standard and work great especially with multiple APs. You can start with turning your existing router to AP mode and replace with APs later.
For stability, you can create a “test network” on the ER-X. This is an incredibly useful unofficial guide to setup ER-X with multiple lan networks, APs and more. Then create redundancy with docker containers on a Pi. (put DNS server on proxmox system and a second on the Pi so if one goes down, DNS works).
For your home assistant question, does the backups or copy/paste data folder not meet your needs?
If you haven’t played Enderal it’s worth a playthrough. It’s a free total conversion mod of Skyrim.