Just want to save a SATA III port if possible and put Proxmox on a SATA II HDD. Server has 80gb of ram but your point about swap is valid.
Yes, it is pretty possible to put Proxmox on HDD and VMs on another (physical) storage.
With PVE4.x you could define the location and size of partitions where to setup Proxmox during the setup.
Just to double check, I can run VMs off the disk where Proxmox is installed, right?
Right. After setup on HDD, in GUI, add storage for your VMs on different LVM/directory.
If directory, than you'd have to mount it beforehand manually.
Back to reasons.
Proxmox takes only 3-4 GB for the system, and with your 80GB RAM I would use only 4GB for swap (my servers hadn't used more then 1Gb of swap for long time. When it happened once, the server was obviously overloaded and gave slow performance, so I moved a hungry VM to another PVE host. Maybe there are reasons to keep swap big, I don't see them yet)
Total 8 GB. Is it really necessary to skimp that on SSD on SATAIII?
But if you plan to play aroud SATA-III drive, than it is good to settle system on HDD which would be the ground.