I get that they're giving him every opportunity to show that he can come back, but I don't see it. I agree with the above posters. Whenever the front office is fully convinced that he can be replaced, or that there's no value there, you give him the Nick Blackburn treatment. That money's gone whether we get anything of value out of him or not.
Another thing to think about is the 40-man and 25-man situation. Obviously, not having Hughes on the major league roster gives us another opportunity to have a guy like Busenitz or Curtiss come up and show us what they can do. Similarly, but with a slightly longer view, there are a lot of good young players who will need to be protected this offseason, and even some of the fringier guys (Dereck Rodriguez? Kohl Stewart?) who may not ever make it, I still don't see the wisdom in having a guy like Phil Hughes block them. He is what he is. Who knows what some of those guys will be?