Use data in the Physical Condition field to create a conditional message in the On Hold Shelf Letter
There is currently a notesaffectloan label in Letters that will conditionally create a message if a patron has a block on their account. Another factor that could affect the decision to loan an item is the physical condition of that item. A conditional message in the On Hold Shelf Letter that the item is Brittle or Damaged or Fragile and may not be available for loan would be ideal.

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Tao You commented
What really needed is to include item/<physical_condition> metadata in FulPlaceOnHoldShelf.xml, then individual library can customize their email template (xlt) to generate different letter wordings based on <physical_condition> value.