I'd like to know if anyone has every run peripherals from the Proxmox server to a physical spot to be virtualized and allow input of the peripherals to control the virtual instance and a usb device nearby.
I am not sure if I understand your question but since no one replied to your post for over 16 hours at this point, I will take the risk: if you are talking about passing USB devices connected to your Proxmox host to your VMs, it's possible and quite easy. You can find the steps here: https://pve.proxmox.com/wiki/USB_Devices_in_Virtual_Machines