MPLS seems to be increasingly favored to encapsulate IP data at higher tier levels, and anything that gets us away from ATM gets my thumbs up.

Before anyone gets the idea it is only a high-tier and highly expensive thing to deploy, I would like to point out Linux has complete support for MPLS routing over ethernet, IP and GRE. For example my pentium 100Mhz firewall with 2 NICs is a very capable MPLS router.

for those interested, here is the documentation