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I've been asking myself the same question for a while. The container inside a VM is my setup too. It feels like the container in the VM in the OS is a bit of an onion approach which has pros and cons. If u are on low powered hardware, I suspect having too many onion layers just eat up the little resources you have. On the other hand, as [email protected] suggests, it easier to run a system, update and generally maintain. It would be good to have other opinion on this. Note that not all those that have a home lab have good powered labs. I'm still using two T110's (32GB ECC ram) that are now quite dated but are sufficient for my uses. They have Truenas scale installed and one VM running 6 containers. It's not fast, but its realiable.
Container overhead is near zero. They are not virtualized or anything like that, they are just processes on your host system that are isolated. Its functionally not much more different to chroot.