For a household with 2+ people – each with personal phone and personal laptop plus a bunch of common devices like TVs, streaming speakers etc you would need a bunch of useful local LAN services:
1. Local Backup storage server – always have a local+cloud back – neither one is good enough just by itself.
2. Local streaming service – photos, music, home videos etc.
3. Internet gateway –
a. filtering firewall,
b. privacy enhancing dns server,
c. optionally wireguard based tunneling with custom routing.
d. You can also log and catch suspicious traffic in your network (best way to catch an infected device on your home network).
e. If you have two Internet connections, you can configure them for high-availability and load-balance your outbound traffic.
4. Local software updates caching proxy.
5. Mail server (transport/relay).