I hope he develops into a very good 2nd line center. If he develops into a third liner it will suck big time.
This is a huge learning year for Horvat, but from what I've seen of him, he has the skill and hockey IQ to come out of this a better player. Maybe he'll "only" top out as an elite 3rd liner like Malhotra. If so, I'd be grudgingly okay with that.
Schneider would be wasted on this team, though. He'd be spending his prime years raising us just enough to weasel into the playoffs and get buried in the first round. In 5 years time (which is how long it will take before this team is good again, IMHO), he'll be on the downslide, and hopefully, Horvat will be at the top of his game.
Now, if you want to argue that we should have drafted Nichushkin instead, well...