Exactly. Virtually all new DCs are being build using Leaf-Spine architectures that leverages pure IP routing and optimize for East-West traffic internally. I'm also starting to see the rapid proliferation of L3-only SDN systems like Project Calico [1] in fairly large Fortune 100 companies, for any sort of end point, particularly containers these days.

[1] https://www.projectcalico.org/learn/