I use him, and I would say Mid - high b tier, He takes a lot of skill and has an awkward playstyle. He also is easily combo locked if caught in air in the wrong form. He brings lots of utility to a 2v2, however it requires a good internet connect and is highly knowledge based gameplay. (Ei, know everyones supers/combos that you can get locked into) All in all, hes a really great character, but you need to know everyone else to use him very effectively. (Also, the trolly, Fishbone/Shuriken perma knock up combo is very cheap, but a free win if your against people who don't know how to get out of it.)
Yeah, you bring up some good points. I also feel as if he's too vulnerable to being locked into a combo. I'm usually fine with Toro, but I end up losing to someone using Raiden or any other combo heavy characters.