Home Server Broken Into Sections Using VM's

Hello All, I am upgrading my server this summer and since I am going to be re-installing everything I had the idea of separating the system using virtual machines.
Host System: (Media Center)
- MPD Music Daemon for Local Sharing Access.
- XBMC Media Server
- Plex Media Server (Option 1)
- SubSonic Streamer (Option 2)
- LXiMedia Server (Option 3)
- SSH Server
- Firewall
- Samba (Windows Networking)
- NFS (Linux Networking)
- Backup System
- Printer Server
Virtual Machine: (Web Server)
- NGINX or Apache Web Server (MySQL, PHP5, Python, Java)
- FTP Server (ProFTPd)
- Proxy Server (Squid)
- Cloud Services (OwnCloud?)
- Torrent Client (wTorrent)
- VPN Server
Are there any benefits to doing this? (Besides easy re-installation of the VM)
Should I separate the File Server Sections of the server as well?
Should I not even bother, because I would be limiting the resources of those VM's and Linux will put inactive processes to sleep anyway to open more memory for the ones that need it?
Better suggestions?

I currently do this with a CentOS/Xen hypervisor, about to rebuild the VM hardware and move to Citrix XenServer though.
allen875 wrote:Are there any benefits to doing this? (Besides easy re-installation of the VM)
All the usual benefits of virtualization. Less electricity usage, less heat and noise output.
allen875 wrote:Should I separate the File Server Sections of the server as well?
Until recently I did this, but I've just bought myself a Synology NAS and using that for files now; 1) a NAS is designed to file share and I don't want to reinvent the wheel on that, and 2) it will be providing iSCSI storage for the new hypervisor/XenServer. Consolidation ftw!

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