Bailey's become the poster boy for why you shouldn't rush pitchers. He doesn't have the stuff right now to do the job and that's been obviously throughout 2007 and 2008.
My take is the kid threw so many curves in youth that his arm is in shock. He always relied on that pitch even when he was in high school. Now his heater is losing velocity and lacks movement and he can't snap the curve as well as he used to. That's what happens when you abuse a growing body. The minor league annals are full of kids who came in throwing smoke at 18, but lost that ability in their 20s.
Perhaps Bailey can still be a good pitcher, but the Reds need to stop treating him like a phenom. He is not a phenom. That's not going to happen. The real question is whether he can be a good pitcher in two, three, maybe four years. That would mean the Reds need to send him to the minors and not call him up again until roughly 2010. Give him time to recover some of what he's lost or at least learn to work with what he's got.
I doubt they have that sort of patience, which means they'll probably trade him and Bailey will get to prove himself a stop or three down the line.