Yes, I am aware of the coal-carbon loop. It's also possible even without mining productivity if you've got high enough quality productivity modules in a cryogenic plant. The only real way to avoid it would be to significantly reduce the coal from lava recipe (and even then it would probably be doable with very high mining prod), but I've play tested with it at lower output, or even earlier builds didn't have the recipe at all and you needed to use the regular coal synthesis recipe on Vulcanus. That setup was just miserable, trying to get enough coal to feed into liquefaction was not fun.
For most players it's going to still make sense to start with carbon trees on Vulcanus since you don't have cryo plants the first time you visit, and getting productivity high enough that early in the game is tough even if it's not impossible.
Once you've moved into the later game and do have that level of productivity available, I'm generally fine with it if you want to build this loop. I'm not even convinced it's worth the effort, but if someone does find benefit with it, go nuts. As you said it still takes lava, which can't be barreled, and is therefore limited to Vulcanus only and there's no crazy loop you can do on a space platform or anything like that.