The step after the projectile seems weird, but I'm just saying that because I can't picture it.
His DP is awesome because it's what defines the skill Mr. Karate has that Takuma doesn't.
Air-only Hi'en Shippukyaku seems dumb. There's really no reason for them to have done that. If it's to make Takuma's and Mr. Karate's gameplay different, they accomplished that mission with everything else.
I also don't like the idea of him having counters, and here's why: Takuma/Mr. Karate is a master of Kyoguken, and he is rivals with the Todoh school, which specializes in counter-attacks. Knowing that makes him having a counter very weird, because it feels like he's stealing from his rival school, and it's not just in this game. It was also weird in 2002 when Takuma had a counter as an HSDM. Maybe I'm just overanalyzing things, but that's how I feel about that.
Even so, Mr. Karate seems like a badass character, and I would play as him.