This seems a little overwrought to me.  In particular, the MUST process for all frame types except...  Doesn't ring true to me.

I think that what you want is MUST process for all _stream-related_ frames.  Then the fact that it might be processed for RST_STREAM is always irrelevant.  The other frame types are always connection-related.

The other thing is that this is a paragraph with at least four pieces of information:

1. 8-bit flag set.
2. FINAL flag on bit 0x1
3. FINAL flag causes half-close (on streams)
4. Other bits are frame-type-specific.