I created something I believe is exactly like this a while ago, one called xrest [0] which resolves the API endpoint routes from the file tree structure at runtime, and another called restree [1] which generates the routes before runtime by generating code.

[0] https://github.com/rajnathani/xrest

[1] https://github.com/rajnathani/restree

This is very interesting, similar to serverless functions on Vercel or many other services. Will be interested to give it a try. Can you explain why there needs to be a compilation step?