Absolutely. I think while plenty of games now can rely on UDP hole punching or file sharing can be done with centralized cloud storage, part of the earlier LAN appeal was sharing a segment together and all the ease that brought.

OS's like Windows can easily share folders and printers, games (particularly older ones) run LAN discovery off of broadcasts, and the lot. Sure, sometimes you can route it, but when I think LAN, I think back to the wireless bridges in a neighborhood LAN between houses we would setup - ARPs and all, in a big messy broadcast domain that worked well enough.

Today I think I'd reach for GRE tunnels to add that functionality if I was them. Otherwise, this is just the Internet with more steps.