After some more toying, I'm pretty sure the Ice Lance is a stand Quick Punch, in forward or back direction.
Can Glacius still recharge health by liquifying?
No. As far as I can tell, his Instinct ice armor takes a certain amount of hits for you at a time until the Instinct meter depletes. Only Jago can heal damage in this build, with his Instinct.
Can he also liquify to evade projectiles?
I'm not sure if Puddle Uppercut does that. Maybe Shadow Uppercut? I can check, if the machines are still open during finals tomorrow. I can tell you Hail's a little too slow to reliably clash with other projectiles unless you spend meter on Shadow Hail.
What about his long arm grapple to help setup a combo?
He doesn't have it. Trade off is, Shatter and Ice Lance can be followed with a full combo from full screen into whatever still hits. He has a throw that pushes your foe across the screen. Overall, his playstyle's very keepaway now. He hasn't lost much. In fact, a lot of people I spoke with felt he's almost too good.
They think teleporting is too god-like? Makes me wonder about Cinder who could make himself intangible.
All that's stopping Glacius from being a lockdown nightmare is how limited in options he becomes at close range, just like in KI1. As for Cinder, it sounds like he's in, but no one move is safe from reinterpretation. So don't expect Cinder to go unchanged.
EDIT: I asked around about Counter Breakers. The way it works is, you anticipate where your opponent will try to combo break you, and input MP + MK at the same time. It negates the break and lets you continue into a full combo right after. But if they don't, your combo drops and
they have the opportunity to hit
you. So it's a high risk, high reward mechanic. Oh, and there's a promotional card game they were advertising at the line for casuals. It "plays like Yomi," made by David Sirlin, former pro SF2 player. I don't think you'll be missing much if you pass.