Re: Fixing at the wrong layer
That's why the MIT people figured out how to switch off layer 2 retransmission to get their factor 20 gain in throughput (Google "coded tcp" to find the evidence). The work reported in this story seems to be along the same lines.
It is along the same lines - the "TCP/NC" in the graph and article is TCP using Network Coding, which I believe is what you're referring to. This latest paper uses Fountain Coding instead, to reduce the computational complexity of decoding at the receiver, for two reasons: to accommodate receivers that have scarce CPU resources1, and to reduce latency caused by decoding2.
1Whether they need to use the CPU sparingly to reduce power consumption (mobile) or just don't have much of a CPU in the first place (IoT).
2Network Coding decoding involves solving a relatively difficult mathematical problem - Gaussian elimination in a Galois finite field - for each received message. There are various fountain codes, but e.g. Raptor codes (RFCs 5053, 6330) can also be decoded by Gaussian elimination, but less compute-intensive alternatives are available.