But how does the NIC know that, 11 hops away, there is a layer 2 device, which cannot communicate with the NIC(switches do not typically have the ability to communicate directly with the devices generating the packets), that only supports a 1500 byte frame?
Now you need Path MTU discovery, which as the article indicates, has its own set of issues. (Overhead from trial and error, ICMP being blocked due to security concerns, etc...)