Network renovation

I recently upgraded my internet connection from xDSL (copper, 10 Mbps download, 1 Mbps upload) to fiber (2.5 Gbps at the ONT, 1 Gbps at the ISP-provided router, delivering 800 Mbps download and upload speeds). Now, I’m looking for a cost-effective solution to completely revamp my network. Please refer to the diagram below for more details.

x86_64 should be a consideration, alderlake-n/ n100 with (up to) four 2.5GBASE-T ports is available on the marketplaces selling globally. 10GBASE-T would probably push you beyond n100, so if you don't need that, the power efficiency and idle power consumption of alderlake-n would be favourable over higher-end options.

I have an MSI H110M PRO-D motherboard paired with an Intel Core i5-7400 processor and 16GB of memory that I’m not currently using. Would that be sufficient if I find a NIC and Wi-Fi card to pair with it?

Good (dual mt76)wifi card with two bands and antenna kit would ne in 100+ bucks range.

Anything with 2x 2.5gbe ports fits your bill.
https://openwrt.org/toh/views/toh_available_16128_ax-wifi

As brada4 said (and you will find more information by the forum search), the only sensible option is to externalize the WLAN-AP functionality to a dedicated AP running OpenWrt.

The performance is there, the RAM is overkill - but the achilles heel is probably the idle power consumption for a 24/7 device. Alderlake-n/ n100 is in the 5-6 watts range, most (but not all) normal desktop systems start around 30 watts (and with dedicated graphics you'd add another 30-40 watts idle…). What you save up front, you pay dearly on the electricity bill.

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My opinion on the first internet device after cpe is to have filogic with wifi.
And throw whatever you have now as extender.
If provider upgrades again just move wifi device down the food chain.
Additilnally you get 3-4 gigabit ports on new wifi+gateway thing.

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The main router itself does not need to have WiFi ?

The switch is already in house or are you looking for this as well?
=> if so, does the switch need 10GbE ports for letting two local 10GbE devices communicate to each other? Are there several other wired devices besides the access point?

The access point needs to be wall- or ceiling mounted ?

It does need WiFi to serve my other devices

I've found a fairly priced switch on an online marketplace matching the specifications provided above

Yes, the only other wired device I have connected is 1Gbit

It doesn't matter as my current configuration just has it sitting on a shelf

As first approximation buy a filogic router with 2.5 WAN and 2.5G+multi 1G LAN and whatever wifi money can buy. The better AP the more clients will lag behind.
Your drawing has 5 port switch, I think there are some routers having that on board.

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Example filter:

Seems like the GL.iNet GL-MT6000 would be a candidate.
See also Configure LAN port as WAN - #20 by andyboeh

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tuf-ax6000 too, more expensive.

I think this is what I'm going for, the jank frankenrouter would be too expensive to operate as it'd roughly cost $177 annually in electricity.

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