Would this hit a sweet spot between a grandma's blog with straight HTML and massively trafficked sites like Wikipedia?
Resource exhaustion seems like a useful feature of _some_ kind of system. What does that system look like?
It is not useful for straight HTML - volumetric DDoS will take it out (not l7), it's not even going to make it to your machine. It does not mitigate well against any real major l7 flood either, just by virtue of "your pipe is smaller". A formal l7 attack would at least do basic recon to find a high resource consumption page (like search.php?q=%20 or something)
I guess this would come in maybe slightly useful with someone running ab or jmeter from a single machine toward you? But I don't know a single instance of that happening in the last decade..
I'm not saying iptables is bad per se, but this article in particular is just some overpriced hosting provider's blog that tells you to set things like kernel.panic in sysctl. The article also claims all of this to be a defense against DDoS, which really will probably just eat through your pipe completely most of the time, not single-person DoS.
Just as real as anything else...
You want to drop unwanted traffic before you start spending more cycles on it.