How feasible would it be to use one computer as a combined server/desktop with virtualization?

I currently have a 24/7 linux old-office-PC-turned-server for self-hosting, and a desktop for mostly programming and playing games (linux as a host + a windows VM with a passed-through GPU). The server's i5-3330 is usually at ~10-15% usage.

Here's the actual idea: what if, instead of having a separate server and desktop, I had one beefy computer that'd run 24/7 acting as a server and just spun up a linux or windows VM when I needed a desktop? GPUs and USB stuff would be passed through, and I could buy a PCIe SATA or NVMe controller I could also passthrough to not have to worry about virtualized disk overhead.

I'm almost certain I could make this work, but I wonder if it's even worth it - would it consume less power? What about damage to the components from staying powered 24/7? It'd certainly be faster accessing a NAS without the whole "Network-Attached" part, and powering on the desktop for remote access could just be a command over SSH instead of some convoluted remote WoL that I haven't bothered setting up yet.

I'd love to hear your thoughts on this.

Edit 2 months later: Just bought a 7950X3D and use the 3D V-cache half of it as a virtualized desktop with the other cores used for running the host and other VMs. Works perfectly when passing through a dedicated GPU, but iGPU passthrough is very difficult if not impossible since I couldn't manage it.

Edit even later-er: iGPU passthrough is possible on ryzen 7000 after all, everything works great now.