Well, that's the question, in the later revision of Sonic 1, does this bug still occur? If not, Sik is right and if it still happens, aaronlong is right. I can't check now as I'm on my phone =P
Also, how about the Sonic Jam version? I guess that might have at least the bugged point emblems fixed... And the Roller as well?
It seems to have been patched up; the screen seems to lock right around the point in the video in the first post where Sonic turns around. So there's basically no way to unload the objects then. However, those first couple points are in the same strange place. So there's that to wonder about.
Just because they kept working on it later doesn't mean they went fix the level if by that point they assumed it was pretty much "done"... ...though it does seem they tried to "fix" it at least.
Oh jesus...that happened to me when I borrowed a Sonic 1 cart from my cousin. Make it to the end of the act...run back and forth...but nothing. The power button and a tall glass of nesquik couldn't have been more satisfying that day.
As soon as I read the topic's title, I immediately thought to myself: "Yes, the crashing glitch that happens if make the screen go down (holding down) while the signpost spins. Pretty sure it's already documented." And then I find out it's not the case. Man, LZ2's ending is just a complete mess, isn't it? Garbled bonus point sprites, missing signposts, crashes...
I added this to the bug list on the wiki here: http://info.sonicretro.org/Sonic_the_Hedgehog_%2816-bit%29_bug_list#Missing_sign_post_in_Labyrinth_Zone
An interesting fact- the crashing bug on LZ Act 2 does work on the iPod Touch version of the game, however, the emulator detects the crash and this forces the app to close as if you pressed the home button on the iPod.
I have actually had this happen to me before, but only once or twice. Unfortunately it was long before I started recording my gaming footage.