but your early h3 was no better.
Frying up - "Anti Fried-Liver Defense"

but your early h3 was no better.
The idea of h3 was to make it easy to open up the diagonal for queen. Also to create an outpost at G4 for the second knight, though I didn't play that line. So there is no loss of tempo for h3.
Black did a mistake by casting prematurely.

Black missed simple tactics and lost, h6 had nothing to do with that.
It's true that h6 was not the only reason for blacks horrendous play, but it causes a loss of tempo for black. If black wants to go ahead with a counter play for Liver-Fry Attack in mind, then he would better play Bc5 and transpose into an Italy version of Four Knights defense.

3...h6 looks stupid, but I dont know of any refutation to it yet. 4.h3 just makes this thread look like a joke.
4.d4 may be better? Transposing into a Scotch where h6 makes no sense? Because Black usually plays h6 in the Italian sooner or later.

but your early h3 was no better.
Believe it or not some GMs tried to make something of this move at one time.

Black missed simple tactics and lost, h6 had nothing to do with that.
It's true that h6 was not the only reason for blacks horrendous play, but it causes a loss of tempo for black. If black wants to go ahead with a counter play for Liver-Fry Attack in mind, then he would better play Bc5 and transpose into an Italy version of Four Knights defense.
There are several videos on YouTube about the Fried Liver Attack and most mention that 3...Bc5 is the best move for Black - some say it "refutes" the FLA. In Pinski's book, The Italian Game and Evans Gambit, Game 50 Velicka vs Blatny, Czech Team Championship, 1997, began as this thread's game: 1 e4 e5 2 Nf3 Nc5 Bc4 h6, where IM Pinski writes, "3...h6?! Of course this is not very strong. At least it is not losing by force.
4 d4!
I will ignore other moves as they hardly make sense."
Your comments are welcomed.