The changes are fine. His damage is still really good and you just have to make better reads re: his pressure now. For starters, you have two guaranteed options with f2 and d4 after ex hat spin. So basically, your opponent has to guess as to whether you're going to poke or not. He guesses wrong, and you can continue your pressure. So you get the same reward you used to but you have to guess right first, as opposed to having it guaranteed. Not to mention f2 is only -1 on block so you still have plenty of options if it's blocked.
It's more conditioning based now. If your opponent respects your follow up, you can start running forward and following up with 112124 again. Another thing you can do is follow up the ex hat spin with b321. The only way this can be beaten is if your opponent armors (it will catch pokes and launch them. Though I still need to test it against backdashes). Once you start doing this your opponent might start trying to armor out, and again, you'll have to make a read. If you guess right you'll get to block and punish against more chars.
So yeah, Lao is probably no longer top 5 but tempest is still really good.