Everything is easily done except the Home Assistant via Ethernet.
If you really want to go this route, search the forums to see if anyone has installed ESPHome on an Arduino board with Ethernet.
Since you started this thread asking about integrating Arduino into Home Assistant, then why don’t you use an Arduino UNO (Ethernet) and sends data/control via MQTT, which Home Assistant is very well suited for.
@phier Absolutely there is an Arduino interface to HA! MySensors
The easiest way is to plug the Arduino Into the USB port and set the integration of up to be Serial.
On the Arduino side you install the MySensors Library. Start with the example GatewaySerial Add your sensor code and the MySensors messaging.
HA autodiscovers the sensors. The only slightly confusing part is setting up the messaging.
Here’s a link to my most recent Arduino to HA project Interface-board-for-remote-control (As of 5 Apr 25 08h36 PDT I have only posted the description, I’m in the process of uploading the code, schemate, BOM, etc.)
If you add an nRF24 radio to the gateway you can link other Arduinos with radios. I have a water flow meter that is connected this way.
The water flow meter connects to the MySensors MQTT gateway running on an RPi. The RPi also controls my irrigation valves and communicates through the MySensors Gateway. (Front end to the valves is SIP (Sustainable Irrigation Platform)
The radios have a range of about 30m unobstructed, but they can also be repeaters which helps to go around corners and through walls.
I use Arduino Nanos to which I have connected the radio. It’s more convenient to get the RF Nano They use very little power so I use the inexpensive wall warts to power (max current < 700mA) them.
I have yet to fully document my Remote Solar Powered Soil Mosture Sensor. This employs a 1W solar panel, an inexpensive 18650 battery, a TP4056 charger and the radio and Nano. The Arduino is put into low power mode and draws less energy in a day than the solar panel provides, I expect this to run for years without a battery change.
So yes, Arduino through MySensors to HA is pretty awesome!