Now they sell you a $60 Modem/Router but it doesn't have a switch in it, nor does it have Wifi. I would not be surprised if Verizon sells increasingly expensive single devices that are the PPPoE-enabled DSL Modem + Switch + Wifi.
.......
Yes, that's precisely what they do. Verizon offers a Westell 6100 which includes a modem/router, built-in switch, stateful firewall and wifi access point.
The Westell handles PPPoE auth and creates the rudiments of a home network infrastructure.
It worked well enough, unless there was a hint of thunderstorm activity or a tendril of lightning danced across the sky. Not only would wifi become flaky but the DSL connection would drop.
Unpleasant.
I bought a Zoom modem X3 ADSL router (<http://www.zoom.com/products/adsl_overview.html#5660>).
Rock solid, it laughs at every electromagnetic disturbance, robbing me of the bitter pleasure of blaming Verizon for Internet outages.
The Zoom X3 is a robust (by consumer standards) router/gateway/NAT firewall with a nice command and control interface.
For wifi service, I connected a Linksys to a port on the Zoom X3 and open source updated the Linksys' firmware using DD-WRT (<http://www.dd-wrt.com/dd-wrtv3/index.php>). DD-WRT turns an ordinary Linksys wireless access point/router into a gem of a device. My Linksys has a static IP address and 'believes' the Zoom X3 is connected to an externally facing interface.
Wifi clients are routed to the Zoom via the Linksys for DHCP leases (the Linksys' DHCP service is disabled). The Zoom assigns itself as the gateway to its DHCP clients unless otherwise directed.
Not as nice as having, say, a Cisco Cat, an F5 for load balancing and an ASA for firewalling but it'll do rabbit. It'll do.
.d.