I had the opportunity to present at ITNOG on the web the use of a switch as an internet border router, and how to set up a distribution strategy within the backbone to reduce the routing information while maintaining an “almost optimal” routing.
For the border router, I used a selective FIB installation in TCAM only for significant destinations. The wide availability of RAM on recent switches permits to hold the FIRT (Full Internet Routing Table) and tag with a BGP Community the relevant destination to be loaded into the FIB. For the remaining prefixes a “hot-potato” strategy can be applied using a default-router to the transit provider.