Thanks for the info dump (My Craftsmanship is pretty much the same). Haven't had a chance to craft anything yet but it looks like there will only be a small change to my rotation and 4 failed FS will still be doable. Not only that, but the extra FS steps leave room for more chances at a Good too.
Rath's original rotation would work consistently only at high levels of Craftsmanship when it comes to 3*, otherwise you would have to sacrifice a potential IQ stack for an additional CS2 as you mentioned. Not as good in terms of Quality but still very effective.
Edit: Nevermind, forgot 850 Craftsmanship requirement for 3*