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Sure: client-to-client.

I know cisco likes to make claims about layer 3 switches, I always tend to work with classic vocabulary of layer 2 being switching and layer 3 being routing.
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...(small one)...(even smaller one)... and the fact that it doesn't look so...neat.

Well, I guess we differ, as I'm off the opinion that nothing looks neater than a full rack o' hardware with lots o' blinken' lights.

But in all seriousness. Routers come and go, switching hardware comes and goes, but rarely do your VPN or routing needs change at the same time as your number of computers or speed of ethernet changes. The simplicity of one device will cost you each time you want to upgrade one of the underlying components.

Matthew