Yes you can beat (usually trade) HHS with sweep. Not from too close of course.
Weird thing about Honda is that he has a funny bounce after spd which allows you to get in range again for another tick spd when he gets up. Far s.short into spd over and over is enough to beat most Hondas online… but Hondas worth their salt are not something you can easily do meaty ticks against. Anyone got an answer for his wake-ups? I can try jumping at the last second to make the headbutt whiff, but Gief is fat, and I suck at it anyways. Anything you try to do to stop the headbutt will just get beat by a buttslam anyhow.
Headbutt in general is a bitch, and I find the jabbing thing lame. It works, and is great from afar. But anywhere closer than half screen is like pulling teeth. When you can predict one (and cancel into green hand :P) it’s nice, but trying to hit random headbutts while walking in that close makes me feel like retard, as I spam-inch-spam-inch, and end up getting hit by the damn thing anyways. Almost worth the risk of doing the lariat just for ease of use and to save my sanity. Almost. 
One thing all characters have though against the headbutt is to simply jump back. If you can bait the headbutt (simply walk into a certain range against a lot of Hondas) just jump back. If you bait him right, he will fly underneath harmlessly, bounce off the wall, and you land next to him and can do whatever the hell you want. If he doesn’t fly underneath you, but AT you, a lot of characters still have an answer for headbutt when jumping back.
After a blocked buttslam is a good time to practice your reversal 360s.
Interesting note, is that if honda hits you with HHS, especially the strong/fierce versions, from in sweep range, it’s technically a free SPD for gief. It’s not a combo, so you can reversal 360 after the first hit.
But trying to do so, and failing, HURTS. 
) You must absolutely take advantage of the knockdown. The only good side against Honda is that crossing him up at the right time usually means you always have some advantage. Since his buttslam only moves him forward and not so much straight up like an SRK, he will miss you and leave himself open. Not to mention, a late splash will knock him out of the buttslam (However, he will reset and not take a knockdown, so be VERY careful not to eat a reversal headbutt/oichio).
Look at how well he uses the down+fierce splash and especially the down+forward knees against Honda’s wake-up headbutt and even from a varying distances and he does have that ability to time the lariat well against the torpedo that you mentioned. But I’ve always felt that his best trait was his ability to hit those jump in meaty attacks. If you miss your wake-up reversal as Honda, you lose your charge and you’re screwed unless the Ochio can save you. If you block the jump in meaty, you leave Zangief way too many options to set up the SPD tick. Jodim was a master at this and it is key against Honda as well as any other character.