Or, to put it differently, one doesn’t try to eliminate the holes in the Swiss cheese—by compacting all cheese into cheddar, for example—but rather to keep the holes in the cheese from lining up, from becoming one big hole that runs through the entirety of the loaf.
An informal straw poll I did found that no one had ever referred to a block of cheese as a "loaf." Nor does a Google search for "loaf of cheese" or "loaves of cheese" return anything other than recipes for cheesy breads.