David Silva is a tough little fellow. Saw people writing him off because of his surgery back in 2008, saw them labelling him as "regressing" after his comeback in 2009, saw them discarding him as a mere benchwarmer for Spain and a player too fragile for PL in 2010, saw them calling him "a poor man's Mata" in 2013. Each time he bounced back and returned stronger than before. He's only 30 and I don't believe his fight has left him yet. Medically I still don't see enough evidence suggesting that the injury he sustained from that atrocious tackle will lead to permanent deterioration of his ankle. So both physically and mentally I don't think he's past it.
Even in this poor season, he is still contributing. I'm not only talking about his assists and key passes here, which could sometimes be misleading, but also the importance of his general passing ability, as seen from both legs against Madrid, and the much-maligned defensive work. Apart from much of December and January, when he seemed to be not putting a lot of effort on the pitch (which, in restrospect, is understandable), I don't see how he shirked his defensive responsibility. Did he not press opposition players? Did he not tackle and intercept (interestingly, he averaged 1.5 tackles and 0.7 interceptions per 90 minutes, which was more than quite a lot of players in our squad, including the shiny new toys;)? Did he not track back enough? Of course you could always argue that he could have tracked back more and tackled more effectively, but using these as evidence of his work rate not enough for Pep? I'm far from convinced by such arguments.
How Pep would utilize him remains to be seen. But he would not be "a squad player who plays only a few games", nor would he be another Mario Gotze as some smartarse would like to believe. All these years, he has always repaid the faith in him.