(Tedious disclaimer: my opinion only, not speaking for anybody else. I'm an SRE at Google, and I'm oncall for this service.)

No.

Edit: expanding on this a little, it's not something that's been released so we can't talk about it. I don't think I can comment on "illumin8"s proposals other than to say that I'm pretty sure they don't work here.

Yes, it's just a 10GbE ethernet switch that can encapsulate the traffic in VXLAN headers, so that it can traverse east/west between any of thousands (millions?) of hypervisors without requiring traffic to hairpin to a gateway router and back. The logical networks all exist in an overlay network, so to the customer VMs, you get L2/L3 isolation. But, to the underlying hypervisors, they actually know which vNICs are running on each hypervisor in the cluster, so they can talk directly on a large connected underlay network at 10GbE (x2) line rate.

This is the standard way of distributing traffic in large datacenters. That way you get extremely fast, non-blocking line rate between any two physical hosts in the datacenter, and since the physical hosts know which VMs/containers are running on them, they can pass the traffic directly to the other host if VMs exist in the same L2 network, and even do virtual routing if the VMs exist across L3 boundaries - still a single east/west hop.