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Comment from Dean Jackson: "This reminds me of something we've run into with CSS filters/shaders in WebKit. It's not really clear exactly when the filter rendering should occur. In SVG this is well defined, but CSS is a lot more complex. Do filters apply to scrollbars drawn on content? Is visual overflow the same as masking? Before borders? Before outlines?"
Filter operations are applied on top of all element drawings, including border and scroll bars. Clarified in spec.