You want your fringe players to shine against lesser opposition, be it in the cup or U21s and it's always a bit gutting when they not only don't, but are actively crap.
With that said, players have struggled on loan in the lower leagues and gone on to do well in the PL - I remember Barkley not pulling up trees on a couple of Champo loans (I want to say Preston and Sheff Wed?) before going on to do pretty well for us. And yeah, I also remember 999 other players who did crap on loan and were just crap and left for free.
Point being it *could* easily still go either way for him here, but my feeling is that Moyes isn't the man to steer him in the right direction. If he was to come good here I imagine it looks something like: Jan loan, we mutually consent Davey in the Summer and get someone suitably sexy in to replace him, and Double A gets preseason and gets off to a flyer 26/27 before captaining us to Champions League glory in 2033/34.