Drop the "pretending to be block devices" part and you basically end up with InfiniBand. It works well, if you ignore the small problem of "you need to either reimplement all your software to work with RDMA based IPC, or reimplement Ethernet on top of InfiniBand to remain compatible and throw away most advantages of InfiniBand again".
Back in ~2012 I was setting up a high-frequency network for a forex company and at the time we deployed Mellanox and they had some very (at the time) bleeding edge networking drivers that significantly reduced the overhead of writing to TCP/IP sockets (particularily zero-copy which TL;DR meant data didn't get shifted around in memory as much and was written to the ethernet card's buffers almost straight away) that made a huge difference.
I eventually left the firm and my successors tried to replace it with cisco gear and Intel NICs and the performance plummeted. That made me laugh as I received so much grief pushing for the Mellanox kit (to be fair, they were a scrappy unheard of Israeli company at the time).