I see you've never tried GCP.
FWIW, Google has been working on these fancy nonblocking networks for a very long time. They’re very proud of them. Maybe they don’t actually use them for GCP, but Google definitely cares about network performance for their own purposes.
Your message seems to imply that these datacenter networks experience very little loss, and this is observably far from reality. In GCP you will observe levels of frame drops that a corporate datacenter architect would consider catastrophic.
What google decided long ago is that for their traffic patterns, it makes the most sense to adopt clos-like topologies (with packet switching in most cases), and not attempt to make a fully non-blocking single crossbar switch (it's too expensive for the port counts). More hops, but no blocking.
Scaling that got very difficult and so now many systems at Google use physical mirrors to establish circuit-like paths for packet-like flows.
GCP is effectively an application that runs on top of google's infrastructure (I believe you already worked there and are likely to know how it works) that adds all sorts of extra details to the networking stack. For some time the network as a user-space Java application that had no end of performance problems.