First it took over an hour to create the backup, then I got a 4.42 GiB tar file, that of course failed to upload to the new Home Assistant install.
I investigated and found that the tarball was just a compressed copy of the complete installation directory of my Home Assistant setup, and that included multi gigabyte `.cache/pip` and `.cache/uv` directories :-s (my old Home Assistant install operates from a Python virtual environment that I created, and Home Assistant keeps nagging me that this installation method is deprecated, so I decided to migrate to HAOS in a VM).
When I deleted those directories the tarball was less than 200 MiB but the new HAOS VM still would not accept the upload. All I got was "500 Internal Server Error - Server got itself in trouble". And of course because HAOS is an "appliance" its kind of a black box so I couldn't find out how to get access to error logs with details :-(.
In the end I decided that the path of least resistance was to simply start from scratch based on the HAOS virtual machine and take some days/weeks to build up the new Home Assistant setup before it's mature enough to take over from the old Home Assistant setup (which is running on hardware that is close to failure).
The important thing is that it's pretty much always easy to make an upgrade thanks to the good design of the backup system. Don't forget to set up backups in either case, it's a sin to not use such a complete system :)
For a system handling sensors and actuators you should be able to run a farm off a RPi in terms of compute power. Quad-core at 2.4 GHz and up to 16 GiB RAM on a RPi 5, that's a crazy amount of compute for the use-case.
HAOS is quite bloated but it's also very versatile and FOSS
It's offered as a HA a̵d̵d̵o̵n̵ app for ease of use (makes it a one-click install), but you can also just `pip install esphome` or use the provided Docker image and get the exact same UI, but with everything (including compilation) running on your much beefier laptop.
So your binaries get compiled quickly and you can still do the OTAs directly from your laptop. HA needn't be involved.
…having said that, as the other poster alludes to, it’s peak requirements that are problematic. If your device can handle them, it’s not a massive power suck because idle requirmements are low.