I agree with trying to move more of the network functionality out of the ISP provided device and into home servers. A simple and cheap access point[1] can provide all the L1/L2 you need. Then you can run dns and dhcp inside Linux, configure firewall rules, segment your network, etc. The sky is the limit!

Note: I reccomend a dedicated access point over hostapd because I had a lot of problems with it circa 3 years ago.

[1] https://www.dell.com/en-us/work/shop/tp-link-tl-wa801nd-300m...