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What would you do with a device like this
(sh.itjust.works)
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You only need one VPN peering point inside your network. You do not need WG on other internal devices, just routing between intermediary subnet and LAN.
Am I misunderstanding your scenario?
I setup WireGuard only last week so maybe I'm the one who misunderstand something : on your LAN assuming you are NOT using your router (or switch, or a networking device) to be a peer of the VPN, don't you need to add each machine as a peer to the VPN? Also doesn't that leave the most granularity so that the (root) user of each machine can chose to be on/off and more, e.g. split tunneling?
What you're saying is true, however VPNs connect both hosts and subnets. If you have a VPN server on your subnet, you can easily allow any client that connects to it to have access to your LAN.
VPNs are simply networking over encrypted tunnels. What you do with that tunnel is up to you.