It is an interesting proposal.
It starts to fall over when you have, for example a MySQL slave that needs to connect to a MySQL master. But now the listening slave on 3306 is trying to connect to localhost:3306.
I would strongly recommend that the CoreOS team reach out to ARIN (the IANA operator) to get a special use /24 assigned for these "magic addresses" and not hijack 127.0.0.0/8.