I've felt this is the way that home computing is going to go for a while, though I think Linus's solution is a bit out of reach for most home users. I'd love to see a "budget" version of this concept but accomplished with a bit more off the shelf hardware, Maybe a higher end Ryzen, or Threadripper instead of Epyc, and maybe the clients could be say, NUCs or some other very small form factor PC that's accessing the server via VNC over gigabit or perhaps having each client as a stand alone computer with game streaming done over Steam/Nvidia/Radeon link.
I've been planning something like that for my own setup for a while. I'd like to know more about the management of the VMs though, for example being able to shut down the assigned cores when a client is out of use to make the idle power usage exceptionally low.