Very well, I agree with your argument about the shine, actually. It gets its fair share of grumbling as is anyways.
New gravity allows for faster vertical movement and SHFFL'd attacks at the cost of recovery power.
U-tilt would be IASA straight into jump on 22ish, but would otherwise wait until 37 for all other actions. I'll have to actually test that 22 value, this is a rough guess.
Now the dair currently spikes 5-7, flubs 8-21. Replace the flub with a meteor with the same BKB as the strong hit, but very low growth.
Additionally, raise the angle of D-throw and raise its base -- we want to remove his D-throw-Jab-D-throw CG on heavies, a strategy that skewed an already favorable matchup. Hopefully it will preserve DACUS followups.
Just to update the changelist:
*Neutral / Tweak
+ Buff
- Nerf
(*) SHL @ current 2% Damage
(+) Higher Grav for better aerial movement, faster SHFFL'd attacks
(+) U-tilt IASA into Jump on 22, otherwise vBrawl 36 for anything
(+) Dair flub becomes meteor with extremely low growth (think Lucas Dair)
(-) Illusion moves slower at beginning to discourage fleeing the camp-site / slightly nerf recovery
(-) Gravity hurts recovery
(-) Remove D-throw/Jab/D-throw CG
Overall, the SHL and tweak Illusion will still certainly allow for camping, but won't be as effective as before especially against tall characters over short characters. Furthermore, the loss of the CG also helps to smooth out these matchups.
The illusion and gravity settings should worsen his recovery, obviously.
Finally, we promote offensive action via the introduction of a psuedo/situational-pillar crafted from U-tilt and weak Dair and the better approach options provided by SHL.
It's difficult to predict how effective that will all turn out, but if he needs nerfs, I'd suggest either setting Illusion landing lag to 0.80x or trimming away damage on a few moves, or putting a charge-timer on Lazorz akin to Bowser's Flame Breath.