In a DB with LSM storage you are free to do whatever you need to do.
For example, you can compact size-tiered levels when their size ratio exceeds some threshold. This approach will make situation presented in paper impossible.
In short, levels 1..N should be compacted into one when sum_{i=1..N-1}level_size(i)>=C*level_size(N).
The multiplier C is important. Compactions will be rare and writes will be faster if C is bigger than 1. The read performance will be worse - we have to read more levels. To make compactions more often, we make C smaller. This way we prioritize read speed.
And the most important thing here that we can compact levels even for read transactions. If we have many read transactions, it is necessary to make then faster.
This very important point of LSM design is not mentioned in any literature I read.
Fractal trees can be seen as basically LSM trees with fixed coefficient C=1. And with embedded index, as smaller levels provide indexing for bigger levels.
So they force database designer into some corner. Which is different from corner of B+trees, but corner nevertheless. LSM trees are more flexible in that regard, in my opinion.