This removes *sfp interface transceivers as pluggable (replaceable) entities between the ethernet controller and the lasers, putting lasers directly on the switch chip itself.

The problem is what happens when 1 single ethernet port transmit/receive laser out of 128/256 ports on die fails? You replace the whole switch, or move it to a spare port assuming you have one on the switch, and cabling accounts for it.

You're also talking 25/100/400/800 gigabit ethernet (or infiniband) ports here too using silicon photonics.