This is a fascinating topic for me; I've heard about this---how ancient Rome could have developed "advanced technology" but chose not to---in several places before. In particular, I read about inventors being killed and their workshops razed if they invented---or looked to be about to invent---anything that would reduce the empire's need for labor or devalue its currency.
But your proposed "point of divergence" doesn't address what I think was the
real cause of that: not the slave-holding (since while the lot of "field slaves" was likely comparable to the worst situations in the American South, "house slaves" were another matter entirely, often being considered as much a part of the family as the children), but the vast population (which might actually include the field slaves; I'm not sure) depending on the Emperor for jobs as well as for "bread and circuses." While in the long run industrialization may lead to fuller employment, that's by no means obvious before-hand.
Samstarrett wrote:
Theodosius, finally feeling safe to do so, issues a decree ordering the manumission of any Christian slave, or of any heathen slave who accepts baptism. Needless to say, most slaves are freed.
... with the attendant dangers of "rice Christians," people who become
nominal Christians because of the personal benefit attached to it, but have no incentive to live a Christian life.
Samstarrett wrote:
412 AD: Theodosius’s second successor in the East, also called Theodosius, and his first successor in the West, Honorius, promulgate a law putting a final end to slavery in the empire.
420 AD: Marcus of Ravenna first puts Hero of Alexandria’s aeropile to productive use, using a modified version to move a cart without the aid of a horse.
It's good that you've put the start of industrialization
after the end of slavery, since were it the other way around there would be strong pressure against emancipation: in the United States, I've read, slavery looked like it was on its death-bed ... until the invention of the cotton gin made it economical on a large scale again.
Samstarrett wrote:
This timeline fails to explain the salvation of Rome from her historical fall
From what I've read, the fall of the Roman Empire was due more to internal causes than the "proximal cause" of a barbarian army; if the longer-term causes were addressed, history would go
much differently.
(L. Sprague de Camp takes a rather later point of divergence, and a modern American classics professor finding himself there as his cause for divergence, in
Lest Darkness Fall, but you should probably be at least familiar with it. And perhaps the
Belisarius series too.)