If I was going to build a private home server, I would choose SmartOS as well. It has all the parts needed and most importantly, virtual networking OOTB via CrossBow. I have not found any feature complete virtual networking in Linux or *BSD. Have to use XEN or VMWare.
With that said, I use Linux for my desktop as it gives the best user experience on a laptop. IMO, FreeBSD and variants still don't cut it at this time for dekstop.