Lao can still crossup.
As already overstated, he has to commit to 112124 pressure now.
Even that is not guaranteed however.
Characters with faster d2s can uppercut after.
Most d1s and d3s can poke under Lao's s1. Haven't tested d4s or b4s.
Both Spinning Hat and Orbiting Hat can be backdashed, at least by most characters. Haven't tested the entire cast.
**F21 can usually catch backdashes. When I tried f23, the "3" whiffed.
Most everyone can armor through Orbiting Hat when cancelled off anything that isn't 112124.
Lao is safe on a lot of strings. Predicting when he will use Orbiting Hat will still be tough on the opponent, and can perhaps be used to bait punishable armored reversals.
EDIT: I'd like to add, as you said, that f2 is a good follow-up after Orbiting Hat.
f2 will stuff pokes, catch jumps, etc, but dies to armored reversals.