Switch with 10 Gig and GRE support in hardware.

is the requirment still 1-2 U switch?

OK. Please show me a “switch” that will terminate Layer 3 GRE tunnels..

If it does GRE then it is making Layer 3 forwarding decisions which is a router function. It may be built into a switch as well, but it is still a router.

HP A5820 (3com/H3C in the past ) is doing 24*10GE + GRE (we test it )
btw in the latest release it is also doing mpls (not test it yet )