Indeed.

But I think that doesn't go far enough: I want to provide K8s with a YAML file and have Kubernetes itself go and create and provision a VM for me. I.e, I want to "kill" Terraform. I don't care about a 'fabric' network (although that could be convenient), just give me an IP that I can reach even it if is external to the cluster. VMs could be just one more resource that can be created or destroyed by k8s, just like network-based storage today.

I haven't found this exact use-case implemented yet. If noone else builds it in the coming months I'll probably start doing it.