Cumulus Networks introduces a feature to use L3 routing to the host instead of MLAG for the last hop physical redundancy:
Finally, Routing on the Host provides a superior network design for bare metal and containers. By relying on OSPF or BGP unnumbered, a server can easily connect anywhere in the data center and advertise IP addresses for itself or containers. With containers, you can use Routing on the Host to advertise the overlay endpoint and allow Docker networking or a networking plugin to dynamically build overlays.
In the late 1990’s, I used the exact same technique with the OSPF routing daemon in Windows NT to this for DNS & WINS (Nortel sold a license for BayRS code to Microsoft in the depths of their financial despair.)
The only reason I think we use/developed/adopted MLAG/LAG for L2 connectivity instead of L3 to the network is because the ITIL-inspired silos prevented networking and server teams from working together. Literally, it was too hard to explain the idea of configuring routing daemons on hosts and to co-operate on troubleshooting them.
RFC1925 Rule 11 strikes again. (11) Every old idea will be proposed again with a different name and a different presentation, regardless of whether it works.