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The lemon slices disinigrate because the are blanched twice to get the bitterness out then cooked in the syrup. The lemon slices are a beautiful feature arranged on the top of the cake. It would be if they could remain solid instead of just circles of lemon rind. The cake is delicious and I have made it 3 times.
I'd try using Meyer lemons and skip the blanching for the decoration. Slice them paper thin, and give them a short bath in the syrup. They have less pith, and are less bitter than the Eureka lemons. They will still be a little bitter, but it shouldn't be overwhelming.
It is net resting that you suggest using Meyer lemons, because the first time I made the cake I did use Meyer Lemons and they did not disinigrate like the Eureka lemons. Unfortunately Meyer Lemons are not always available to me, especially now that we are getting out of citrus growing season. Thank you for responding.