You actually want both software & hardware. I like to know when applications try to get out and make the decision myself whether to allow them.
I also have a lot of applications and cant imagine configuring them all in the routers firewall especially for home use. Everytime you installed an app and uninstalled it you would have to open and close the ports manually in the router. Although some router/firewalls support UPnP which along with certain apps setup temporary rules.
Most routers nowadays have some form of firewall software in them although my linksys router isnt = to my pixx firewall
Anyways you want layers. Onions have layers