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Usually if you are doing something like that you are passing a SATA controller card/HBA directly to the VM and the drives are connected through that.
So all of the data would still be on those drives even if you blew up that VM entirely or proxmox corrupted itself.
On some levels it would be easier to recover from a system failure because you could have VM backups or snapshots to rely on.
It's a more advanced setup but it's not inherently "bad" or more risky. And yes, usually people are doing that type of thing because they don't need an entire separate physical server if they already have one with some spare cores and ram.
For example I have truenas running on a server that has a 6700k and 16GB of ram. That's overkill CPU for a Nas and I already have a 32 core 128GB ram server running. I'm migrating truenas to that server and giving it 4 cores and 32GB (still overkill for my needs). That will let me shut that other server down and save on my electric bill.
Yeah this is what I do. Pass the hda card through to OMV and have a union fs with snapraid. I then periodically back up to an external HDD.