Hi Roland,
Thank you for your comments and resources. I think you may have misunderstood our email (we could've made our email more clear -- apologies).
The following is our explanation if we interpreted your email correctly.
What we meant by "may not have necessary capacity" is that routers do not have enough CAM/TCAM space to deploy/install ACLs, BGP FlowSpec rules against large-scale DDoS attacks without 1) incurring major collateral damage (e.g., deploy /16 source-based rules instead of /32 so that more DDoS traffic can be filtered while using less CAM/TCAM space), or 2) performance penalties that are introduced by deploying more filters than a router's data plane can support (i.e., data plane to control plane I/O limitation).
We believe DDoS mitigation based on layer 3 and/or 4 information can be fine-grain. As a matter of fact, when we referred to fine-grained traffic filtering in our original email, we meant DDoS mitigation based on layer 3 and 4 information.
I hope this addresses your concerns.
Best,
Lumin