Makes No Sense
You level your critisism at the Heirarchical Model which Cisco stopped promoting almost 6 years ago and then outlined solutions which are only relevant to the core not the entire model from end nodes (access layer) to core.
I am no longer active in Network design but I remember the three Level hierarchical Model from my CCNA about 14 years ago. The last time I looked at the Cisco literature about 5 years ago Cisco had moved to what they call the Enterprise Composite Network Model which was a bit more functional and a think a bit similar to the flat model you defined.
Your top of the rack switch scenario sounds like it would fit into what Cisco calls the Server Farm Block in it current enterprise model.
I am sure the Hierarchical Model was never meant to be the solution for every circumstances. I am also sure that if it was relevant to network design in most enterprise over the past few decades it is still as relevant in all but a few today. Also being just a conceptual framework I am sure that it can be used in the scenatio you described, since all you describe is what should happen at the Core. In a sense you are saying that at the core we need to implement the a specific design for today unpredictable and data hungry vitalization and other application.
All from memory because I have not lifted a finger to do any networking for almost five years, but answer these question because it was not answered by your model. Where in your model will you aggregate access devices, where will you implement ACLs, QOS and security. Where will you converge VLANs and broadcast domains.
Cisco moved to a more Functional enterprise model a while back. Your article would be more useful if it truly critiqued the Hierarchical Model in some coherent way rather than just being focused on networking within a Server Rack or data center.
Since the critique was leveled at Cisco generally it would have been useful if it was leveled at the Enterprise Composite Network Model which Cisco currently promotes ( Or was promoting FIVE YEARS AGO) rather than the older Three Layer Model.
Cisco has seen better times but I am sure there misfortune of late has more to do with the fact that we got tired of buying their overpriced kits that offer worst performance than their competitors than with network design models.