With the Morgan deal, I can't see his redraft value being anything. Even if he gets called back up, I can see playing time becoming very sporadic.
In a dynasty, I'd hang on to him if you can because he does have a lot of talent. If the switch ever goes on, he does have 25-25 potential...
I know this is the second team he's struggled with, but at least he doesn't seem like as much of a douche since he's been in WAS. With the way Milledge has been handled by the Nats, I'd be intrigued if he got another change of scenery...
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In re-draft leagues, definitely time to cut bait. In dynasty leagues, I'd be looking to acquire him, as he's shown flashes of his talent, and he's likely to come at the reduced price of a half finished box of crack jacks.