In a title challenging team, he'd be seen as a useful continuity player. Today he got 124 passes, 92.7% accuracy, 11 out of 12 long balls successful, 136 touches. Those are Xavi type numbers, and any praise he gets will be well earned.
However, he's not defensive enough to protect the back line, not creative enough to an AM, and not assertive enough to be a playmaker. All of which makes him a bit pointless unless you want a midfielder who offers possession for possession's sake.
I'm happy enough to keep him in the squad and I can see why Guardiola wanted him. But he's not good enough for City's first team and - if our future transfer windows go well - he won't be good enough for ours.
But given that squad unity and culture is an important part of any rebuild, we need to keep hold of a certain number of players. Fred should be one of them.