Your objectives are all very reasonable. Isolating various client classes on their own subnets with appropriate firewalls between them is a prudent plan, as is having a management subnet with very limited access to manage the various "sensitive" parts of your infrastructure.
Where I, and I would expect security/networking experts would disagree is in the use of NAT as a firewall. NAT is not a firewall, though it does provide some restrictions on connections. One can make an argument that a NAT is significantly less secure than a proper firewall, not only due to the lack of control, the fact that clients can open any outgoing connection, and further that, as far as I know, declined connections can't be logged with Linux NAT.
NAT also does absolutely nothing to manage IPv6 (and, for any home user, [Edit: IPv6 NAT of any flavor] should probably never be used).
NAT also breaks certain security features of TCP/IP transport, such as ESP (The encapsulated packet contains the "inside" address, though the packet has the "outside" address, so that it looks to be "forged".)
Multiple subnets, each with their own DHCP (if used at all) and DNS, and a proper firewall should allow you to:
- Keep your networks running locally even without connection to the public Internet (though you'll be unable to resolve or connect to public services without connectivity)
- Control traffic between subnets as you see fit with firewall rules
Very often VLANs are used "trunk" multiple subnets over a single Ethernet cable. A "smart switch" (VLAN-aware) is able to filter out VLANs to specific ports, if additional isolation is required. OpenWrt, for most devices, can configure the device's switch as a smart switch.
For devices that have fewer Ethernet interfaces than subnets in use, VLANs are used within the device.
Edit: The subtlety that @dlakelan brings up is important, the use of NAT on Router 2 "hides" the identity of all the devices behind Router 2 -- You won't be able to either define rules around specific IP addresses, nor be able to log "interesting" behavior of those clients.