I really think this is an interesting hand to look at because there are alot of LAG players out there. Which is very good for money. Anyways, I sent this to 2 of my buddies who are professional players in AC. They didn't really say how they would play it but more less give you something to think about. First of all, it's obvious your probably not comfortable with a player like that. You should have moved to different table that your more comfortable with. Secondly, limping on the BTN with AQo wouldn't have been a bad play either. AQ is an overrated hand that can get you stuck in situations. Plus it couldve saved you some money.
As for the flop, I think you hit a good flop against the LAG. From what you said about the guy, him betting on the flop after you raised PF, shows weakness. That's your first indication on FD, MP or TPWK. When you raise, raise bigger against him. Make him pay for drawing out on you. I think $60-$70 range wouldve been a good size raise. Because now with your
small raise, your giving him great odds to call. And it
doesn't help your decision making. If he wouldve called a $60-$70 raise, you can bet he has FD at the very least.
So make things easier for yourself. Turn card was a bad card in some sense, but I don't think it was bad enough for you to fold there. I think calling would be ideal and see how it played out on the river. Plus, your Qd is only beating by A or K if another diamond woulde came out. Obviously if he pushed all-in, I would more likely call him than a good value bet. But with his hand and no one improved, he wouldve probably checked.
All in all, I think your thoughts were correct but you didn't follow thru with it. Go with your instinct next time.