The broadcast domain makes a difference. This is layer 3 when assigned a network and not flat. You can do it with a L2 switch. If you only have a couple of devices then you can get away with it but as the numbers grow your network starts to slow down. Windows PCs are especially bad.If both the source and destination are wired up and on the same switch, should be no impact on any other traffic - port to port on modern switches is non-blocking, the SoC/fabric should have more than enough BW to do max traffic across all the ports...
I never will give up my L3 switch. It's easy for me to run. And it is the better network structure.
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