

IMO no.
Small instances can have issues with federation and now showing all replies/content.
There’s also the aspect that you’ll need to moderate content stored on your server, if someone posts something illegal and your server caches it, you’re responsible for cleaning it up.
I’d say go Debian and Docker, proxmox is nice if you’re running a lot of VMs or want HA and clustering but otherwise you don’t really need it.
If you want a GUI for docker containers there are several, Komodo or Portainer are good options.