To establish a wg connection, only one node needs a public IP/port.
> Router/central server? That's a single point of failure
Your router is a SPOF regardless. If your router goes down you can't reach any nodes on your LAN, Tailscale or otherwise. So what is your point?
> If that's a router, the router may be compromised and eavesdrop on your connections, which you probably didn't secure as hard because it's on a VPN.
Secure your router. This is HN, not advice for your mom.
> Not to mention DDNS can create significant downtime.
Set your DNS ttl correctly and you should experience no more than a minute of downtime whenever your public IP changes.