it would seem to me that MiLB pitcher placement is going to have two factors pushing in opposite directions depending on what the development objective is for that pitcher. If you have a guy on whom you are doing major mechanical or approach modifications, new pitches etc., I think you want to put him where he can remain competitive while he works on those things, otherwise he simply won't be able to stay in games long enough to do so or will be forced back to old approaches. OTOH, if you have a pitcher who needs to hone sequencing, general command, his "compete level" as they call it in hockey, you want to promote him to the highest level of competition he can handle - where he can't skate by on stuff, and force those "art of pitching" issues to the fore. Where do we think Madden is on that continuum today?
I have to think that an org that claims development as its highest priority is being driven primarily by the balance of those considerations rather than the needs of a guy it appears they brought on to be career AAA fill. But that's not to say they don't give some consideration to keeping a competitive team on the field in Toledo, it's just not very much.