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My point is it's not actually much (or potentially any) simpler to use PCIe passthrough than using an LXC. Yet it comes with more resource usage and more restrictions. Some hardware is more difficult to pass through, especially with iGPUs. I don't even think all iGPUs even use PCIe.
iGPUs are incredibly easy to pass though and are PCIe devices.
Not all of them. Have a look at a Raspberry Pi or Apple Silicon devices. In fact most ARM SoCs I am fairly sure don't use PCIe for their iGPUs. This makes sense when you think about the unified memory architecture some of these devices use. Just in case you aren't aware Proxmox does indeed run on a raspberry pi, and I am sure they will gain support for more ARM devices in the future. Though I believe an x86 device with unified memory could also have problems here.
If it wasn't connected via PCIe how would it talk to the GPU. Anyway Proxmox does in fact not officially support ARM so that is a pretty miniscule use case. I'm not even sure why you would want Proxmox on a low powered device.
For me PCIe pass though is the easiest. Virtualization adds little overhead in terms of raw performance so it isn't a big deal. If you prefer LXC that's fine but my initial statement was based on my own experiences.
AMBA/AXI-bus in the case of the Pi. GPUs existed long before PCIe did lol.
One some x86 systems the CPU and GPU aren't connected with PCIe either. AMD has infinity fabric that they use for things like the Instinct MI300 and some of their other APUs
Edit: Oh yeah also ARM isn't just low power anymore. It's used in data centers and super computers these days. Even if it was there is lots of stuff you can do with a low power node, including running file servers, DNS or Pi hole, web servers, torrent/usenet downloaders, image and music servers, etc. I have also seen them used to maintain cluster quorum after loss of one more powerful node. A two node cluster won't have quorum if one fails, so adding a pi as a third node makes sense.