What current are you trying to drive the LD with? The problem I see is that the variable resistor has to take the full current of the LD (since the current into the JFET gate is zero), so it's going to have to be a low value, like 10's of ohms. At that point you may as well not even use the JFET, becuse the voltage and current won't swing that much when you have over 2v of headroom anyway.
I don't see what the capacitance is for. My guess is 10uF should be okay -- at 50mA, it will charge and drain in about 1 ms, which is plenty short not to be annoying. I'd guess you could go as high as 100uF without really affecting turn-on/off delay, but I'm not sure why you would want or need to.
-Colin