There are two features I would like to see added to the 300 and 500 series to make them even more useful in small business deployments.
1. The ability for the switches to act as DNS forwarders and to respond with entries in the host table to DNS requests when in layer 3 mode. It looks like most of the required components for this are already on the switches. They have the ability currently to enable DNS, specify a local domain name and have a host table. The only thing left is to enable the switch to work as a DNS forwarder and respond with static host entries added to the host table. I would envision the controls having two components: 1. A checkbox to "Allow Switch to respond as a DNS proxy." and 2. A check box on the services page to allow "DNS Queries."
This would be a nice benefit for small businesses that have the router running in layer 3 mode that don't have an on-site dns server. This feature is also important because several of the Small Business Series Routers only have the dns forwarder component and don't have a local dns host table that will return requests like: hostname.localnet.
2. The ability to to some basic policy routing and protocol binding in layer 3 mode. We have some deployments where we would like to do some basic policy routing at the switch instead of waiting until the the traffic reaches a router or firewall.
Thanks Cisco Small Business for reading over these feature requests, and thanks for making great small business switches!