I have retired the Watchguard Devices with the migration to PFSense running bare-metal in one of the Supermicro Nodes. I will likely virtualise this in the future.
In terms of network/switching I have moved to an intermediate step here vMotion and Storage are running over DAC’s while VMware management and VM traffic is still over 1Gb/s networking. This is working incredibly well. Due to the onboard network cards I am able to vMotion at 40Gb/s which for a home lab is game-changing. Storage is currently over 25Gb/s and the long-term plan is to get a 25Gb/s switch. The contenders at the moment are a Used Dell enterprise switch or possibly a QNAP box.
