Exactly. Just know the limitations and capabilities of your hardware and implement your system accordingly. My Rpi4 works well for adguard home, wireguard, NPM etc. While my media server and other resource heavy stuff are installed on a Mini PC.

Can you give me some pointers on how to get started on accomplishing this? Maybe some app names or tutorials?

I started using FreeTube but maximum resolution is limited to 1080p. Is there a way to watch videos in 4K or is the 1080p YouTube API limit?