Most type 1 hypervisors are geared towards servers and virtual desktops with thin clients for accessing them. Where as a type 2 hypervisor you would run on a desktop OS and then use it to run other virtual machines, think VirtualBox.
I looked at taking my main desktop and having Proxmox installed to the baremetal and then adding a second video card to allow for a virtual machine to be my desktop with a mouse, keyboard and monitor and then creating a second Virtual machine with a third video card to run using another keyboard and mouse as a windows machine. I ran into a number of problems, first the stablity of getting my motherboard, CPU to work with passthough and also running out of PCIe lanes for all the needed hardware connections. I ended up just building a smaller machine for use as my daily linux box.