I'm a big Oil fan and I see two problems...
1. until recently we had space for him in the Top 9 with good minutes. I think our coach is screwing up here and overplaying our core too much (which is funny because I'm not talking about Tippet but his progressive younger replacement)
2. he keeps taking stupid penalties
My opinion hasn't really changed... if they can't get him in top 9 (and Oil can make a great third line) with at least 12 minutes a night then AHL. He's being wasted right now.
I've been really unimpressed with Woodcroft for his handling of it, but equally surprised Holland hasn't made the roster decision to send him down, speaking as someone not an Oilers fan but who has followed Holloway closely. There's simply no benefit to a first round pick spending his D+3 season on the fourth line playing eight minutes a night, not for the player and his development, and not for the team, even in the short-term.
Yes, a couple penalties and give-aways haven't helped those few auditions up the line-up, but he lasted less than a period of the first game in the top six coming out of pre-season. If a team like Edmonton with a chronic inability to develop and build depth is not willing to give a young player a bit more leeway early in the season, they'll never round out that roster.
This is how successful picks become development failures. While Holloway has missed time with injuries in the previous two years, his D+1 at Wisconsin was basically a best case scenario in terms of offensive growth, and his half-season in Bakersfield was very good given the layoff, better by underlying play driving and the eye test than good but not great counting stats. There's no excuse for risking that potential for eight minutes of replacement level hockey right now.