Unless I'm misunderstanding you I'd consider that table stakes -- you don't have much of a overlay network if it can't do at the very least pod<>pod and pod<>svc routing.

Thinking aloud, by "Service IP" routing do you mean that actual services can have external facing IPs? I had no idea kube-router supported that, maybe I'm on a version that's too old?

[EDIT] Looking back at the kube-router docs, I see no mention of what I was discussing above so I'm going to assume "Service IP" means the usual IPVS/LVS stuff that kube-router does. I find that feature doesn't really affect me directly as a cluster operator though... Though it's probably saving me some latency (I assume you can skip a DNS resolution or two?)