Instead of a yad (finger pointer), can someone use a laser pointer to help him follow the place as he reads the Torah during public Torah reading? I can't imagine that there are any halachic issues, offhand. Are there? Any problems of kavod Hatorah?
Although it is unlikely given the power of most commonly available lasers, it is possible to damage the klaf using a laser if you had a high powered laser.
Some may not like the idea of using a laser since it is moving away from the ancient tradition of using a yad, which is considered to hiddur to the Torah in the same way that all the Torah adornments are considered a hiddur. Torah covers, crown, breastplate, mantles, bells, etc. often use velvet and silver to increase respect of the Torah and the yad is included in this.
Chapter 28 Shemot speaks about the clothes of the Cohen Gadol's. There appears to be a correlation between the Torah ornaments and the Cohen Gadol's garb (mentioned here). But the relevance to the yad to the Cohen Gadol here is absent. The function of the yad is merely to point, so as not to damage the Torah. Indeed you are correct, that in principle a laser could be used, but may not be mehuddar in the same way as an ornate silver yad.
There is also the unlikelihood of someone mistaking that it could be used on all days of the week. Although, in a public reading on shabbat/yom gov, I would imagine this is somewhat far fetched.