I personally really, really like (Docker) containers and I host most of my stuff with it, on a Raspberry Pi and on (free tier) Oracle Cloud VPS's. I also plan to (re)install Proxmox on a spare old laptop and run some stuff in VMs on that (namely Home Assistant) and might try a NixOS server too.
So really, use both. Use the right tool for the job. And you can also run containers in VMs and even use Ansible to configure everything with playbooks, allowing you to re-run said playbooks when things go wrong.
Pika Backup (GUI for
borgbackup
) is a great app for backups. It has all the features you might expect from backup software and "just works".