Follow-up thought after reading the comments: I think a basic summary of the Level 1/2 concept is useful, as well as illustrating the failure modes, but you spent enough time on it that I'd assumed that was the main point.

Perhaps summarizing that a bit, and adding clear section headers to indicate a change in topic?

I almost missed the last four paragraphs because I was going "oooh, no, I totally already get this, because it's similar to something I was thinking about." Fortunately I'm compulsive about finishing articles, so I got the nice benefit of that last section as well :)