An answer is that the d->0 approaches infinity presumes a nice, continuous analytic function. If d->epsilon, you can't get to that singularity.
There was an equivalent problem in the E/M space with "The Ultraviolet Catastrophe" [1], which turned out to go away if you assumed quantization.
I'm not going to claim this is a perfect analog to the gravity problem, only that a lot of physics doesn't quite work right when you assume continuity. (The Dirac delta is a humorous exception that proves the rule here, in that doing the mathematically weird thing actually is closer to how physics works, and it required "distribution theory" as a discipline to prove it sound.)