> Because the timeout is still less than the lower layer timeout, the upper layer will queue up more retransmissions faster than the lower layer can process them. This makes the upper layer connection stall very quickly and every retransmission just adds to the problem - an internal meltdown effect.

Intuitively, this is obvious at an organizational level. If your boss is constantly micro-managing each piece of work (segment), and his (or her) boss is doing the same, you are going to have a meltdown.