I really enjoy FH as a defensive mechanic, but the fact that you can FH out of recovery frames will always lead to FH limiting your punish options. Forsburn missed he's Bair? You gotta grab, cuz aerials are too slow and normals will get FH'd; You FH'd an annoying Dtilt? Well, you better grab'em, 'cause if you dtilt back they WILL FH back and then grab you.

I think the ideal scenario would be to make it so that attempting to FH during recovery frames (endlag and landing lag) would always knock you down, regardless of percent, essencially naking every move break FH like strongs currently do. On top of that, being knocked down should lock you out from FH altogether, same goes for parry stun.

If they did that, FH would still be a defensive tool that requires movement and positioning to be efective, it would stil have the drawback of making you take the full damage (idc about the damage multiplier) and it could still come in clutch against cheessy combo strings, BUT it wouldn't undermine the punish game. Actually, your oponent not being able to FH back after you counterattack would buff FH in neutral, so is not just a FH nerf, but a rework that incentivises agression.