Well, not wrong that it solves the problem, but with data breaches happening frequently, I wouldn’t want to repeat 1 single password for all services lol.
Even if companies hash passwords, it’s still a gamble whether they are using an up-to-date hash algorithm (or if they do even hash it, lol). Plus, generally best to avoid exposing passwords, hashed or not, in the first place.
+1 to this; Time spent on your setup is an important factor too.
The more important your data is, the more time you are going to need to spend maintaining your system to ensure security, backups and fail-overs. Not everyone has luxurious amount of time to spend on their home-lab everyday.