It definitely works well; even if the opponent catches on and stops waking up, you'll have access to your post delayed wake-up game. If they decide to instantly get up off the ground (no wake-up / no delayed wake up) that's still a good situation.
B2, 1, 2+4 is one of my favorite strings; I use it quite a bit because it has a lot of mix-ups / options.
- B2, 1, 2+4
- B2, 1, 4, cartwheel drop (mb)
- B2, 1, 4, low chakram (mb)
- B2, 1, 4, up kick + shaolin drop (builds half a bar of meter and quite safe).
- B2, 1, throw (I start using this once the opponent respects my options).
The more you use one individual string (with various options), the more ambiguous your offence becomes; if you have one particular set-up off a specific string (and only use it at that time) the opponent will start to read it and you'll end up in trouble.
Against Kung Lao you should stay grounded because you have to look out for 3 of his options: 1- teleport 2- divekick 3- spin. This also applies to all match-ups where the opponent has a teleport (going airborne makes you vulnerable). In other match-ups where you can jump more freely, leaving the ground creates a mix-up / mind game; will he or will he not dive-kick.
You really have to read / anticipate the teleport and have your D1 punish ready. You actually want to hit him on the way up (animation of him coming out of the ground behind you) to negate his follow-up options. You can also try to bait a teleport if you notice that that the opponent likes / wants to react to chakram. To do this, throw out a standing 1 / D1 from 3/4 to full screen and see what happens; the start-up animations look kind of similar to chakram (high and low) but recover in time for you to punish him.