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There's lots of ways to skin this particular cat. My current approach is low powered Synology (j series?) for mass storage, then 1 litre PC's running proxmox for my compute power using their NVME for storage, all backed up to the Synology.
This is basically my homelab. Synology 1618 + 3x Lenovo M920Q systems with 1TB names. I upgraded to a 10gb fibre switch so they run Proxmox + Ceph, with the Synology offering additional fibre storage with the add on 10gb fibre card.
That's probably a few steps up from what the OP is asking for.
Splitting out storage and computer is definitely good first step to increase optimization and increase failure resiliency.
I’m interested in how you like Ceph.
My setup is similar, using a DS1522+ volume as shared block storage for an iSCSI SAN for three Proxmox nodes. Two nodes are micro PCs and the third is running on the 1522+. There’s a DS216j for backups.
Ceph is... fine. I feel like I don't know it enough to properly maintain it. I only went with 10gbe because I was basically told on a homelab reddit that Ceph will fail in unpredictable ways unless you give it crazy speeds for it's storage and network. And yet, it has perpetually complained about too many placement groups.
Aside from that and the occasional falling over of monitors it's been relatively quiet? I'm tempted to use use the Synology for all the storage and let the 10GbE network be carved up into VM traffic instead. Right now I'm using bonded USB 1GbE copper and it's kind of sketchy.
I maintained a CEPH cluster a few years back. I can verify that speeds under 10GbE will cause a lot of weird issues. Ideally, you'll even want a dedicated 10GbE purely for CEPH to do its automatic maintenance stuff and not impact storage clients.
The PGs is a separate issue. Each PG is like a disk partition. There's some funky math and guidelines to calculate the ideal number for each pool, based upon disks, OSDs, capacity, replicas, etc. Basically, more PGs means that there are more (but smaller) places for CEPH to store data. This means that balancing over a larger number of nodes and drives is easier. It also means that there's more metadata to track. So, really, it's a bit of a balancing act.