That's more of a recursive version of the lower layers; using layers 1-4 of one instance of the OSI model as layer 2 of another instance.

If anything, this demonstrates just how useful the clear abstraction barrier between layer 2 and layer 3 is; you can have a very complicated software package (like a VPN) as a layer 2 instead of a physical network and all the code from layer 3 up doesn't even need to know.