that's a lot of points of failure.

Now you depend on the SD card, the network and the nfs server...

just saying. I have a home network and sometimes when power goes out, I've have strangeness when things don't come up as expected.

It lowers the chance of failure of the most vulnerable part. The NAS existed before and had RAID and backups anyway. And if the switch fails I can't access home assistant anyway.

The more important part is that all automations are just nice to have things and not needed to "run" the house. It's for stuff like "charge the car when the sun is high" or "notify me when the washing machine has finished".

Indeed, another viable approach.