I currently have a home VMware cluster. They have shared ISCSI storage off of a Windows 2012 bare metal box so I can vmotion between them. Works fantastic. I'm looking to replace the 2012 with a new physical server. Living in the virt world for work, I tend to want to virtualize everything. Rather than waste a piece of hardware on an traditional OS or even XPEnology I considered installing ESXi on it, creating a XPE VM and share a NFS datastore off of it for my clustered hosts. This would allow me to run other things on the physical server and still give me somewhere to host a shared datastore for my other. Performance isn't a huge issue, I'm not running some sort of heavy database off it, just normal (mostly windows based) vm's.
I'm kind of going into the territory of nested VM's but with storage.
I'm kinda looking for someone to talk me out of it and tell me what this is a horrible idea. I just hate wasting an entire piece of hardware for 1 thing.