Lambdaliths, or monolithic applications deployed using AWS Lambda, create a debate within the serverless community regarding their advantages and disadvantages. While they can simplify development and improve portability, they may lead to higher cold start times, reduced scalability, and a loss of fine-grained telemetry data compared to the function-per-endpoint approach. Ultimately, the choice between Lambdaliths and single-route functions depends on specific application needs and traffic patterns.

The article discusses the innovative approach taken by Vercel in building serverless servers, emphasizing the fluid architecture that allows for scalability and efficiency. It explores the technical challenges faced during development and how they were overcome to enhance performance and user experience.