> Also its a good idea to encompass recommendations for p2p and loopbacks (and 
> for that matter any assignment where prefix length is going beyond /64 into 
> smaller subnets) into one standard track because the cautions and potential 
> overlap issues that may exist for a /127 would pretty much be similar for 
> /128 or any prefix that goes into the lower-64 bit territory...

> One major concern I have with using /127 and /128 on p2p and loopbacks 
> respectively is that we need to be careful that there are existing (ISATAP 
> etc) and potentially future implementations that would use/reserve bits in 
> the lower 64 bits -so unless we set aside bit boundaries in the lower 64 
> bits, we are likely to overlap with these... which is why if we use /127 with 
> a whole /64 reserved for the p2p subnet, then it should be okay but if /127 
> or /128s are numbered from the same /64 consecutively, then obviously its 
> likely that the reserved bits used by other implementations would overlap. 
> When this happens, any scenario where the router (which has this overlap) is 
> SRC/DST of packets would be confused whether to interpret those lower-64 bits 
> as simple global unicast prefix or try to treat the lower-64 bits in a 
> different way (according to the protocol implementation which is using that 
> bit pattern).

a few general points:
 - the 64 bit boundary is a "policy". implementations should handle any prefix 
length.
   implementations should, and as far as I know do, consider all bits in the 
address as transparent.
 - a loopback interface using a /128 cannot by definition overlap with anything 
else. 
 - for a point to point link the operator should know if there applications at 
either of two end points requiring the use of
   reserved addresses, if so the link must use a /64 otherwise /127 is fine.

these are operational choices, and I don't see a need to change IPv6 addressing 
architecture or protocol specifications.

cheers,
Ole

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