I feel that they retain the name of a 'switch' to keep many 'routers' from becoming obsolete, ergo Cisco Catalyst 5500 w/RSM.
These are VERY inexpensive now-a-daze, but for ethernet routing, would easily make any of the 2600/3600 'routers' look like very poor performers for the expense. Cisco could easily make several of their product lines obsolete - i.e. VPN Concentrator, PIX, types of routers, by incorporating only a FEW more features into the Catalyst series. To some degree, they have, and some lines are. Of course, there will always be a place in the world for the 12000 series and the like, but it will be nice when L3 switches (routers) are the norm and not the exception. I believe Cisco has really started to think along this mentality with the relatively new 3550 line (both SMI and EMI). I use several of those at the office and have thus far been quite impressed over the previous 1900/2900/2950 lines. It was probably around 1997 - 1998 when the first L3 switches started hitting the scenes. Even Madge/Olicom had a L3 fast ethernet switch in '99, back in their days of ATM grandeur.
Anyway, I digress, we now return you back to your regularly scheduled programming.