On AWS EKS Fargate, each pod runs in its own dedicated VM. With Oxide each k8s node is a VM, so you still need something like Talos.
On networking it looks like it is getting closer. Where you can have external subnet give pod routed IPs without overlay. But the gap, as marked by the article, is also the load balancing.
It would be nice if Kubernetes were a native feature out-of-the-box. Also integrated within the existing user/access control.