1. You can armor before the flame and even poke out depending on your character. Mileena can normal ball roll, goro can d1/3. I'm like 99% sure Cassie can 212 before the flame.
2. Crouch block the flame and goro is pushed far away enough where 2 won't make contact to the opponent, even with timing that would jail a standing opponent. Since ur +12, you can go for a d4 xx pw or a f3, but f3 isn't guaranteed and pressure ends after a blocked punch walk.
3. The reason why this is like a staple thing with this variation is because there's always the chance goro can do pw to beat out your mash out attempts. It legitimizes d4 xx flame, which is godlike when you've conditioned them to this mixup. Otherwise, it's just that; a mixup. Not a block infinite, not a pseudo block infinite, just a mixup.
And lastly, 4. I hate the term pseudo block infinite, it should be burned in a fire like Kobu Jutsu Tanya did this patch.