I guess, but after you waive and he passes, I think its okay to let him try it again somewhere he fits better.
It doesn't happen on a regular basis, but back in the day Danny Briere cleared waivers early in his career with the Coyotes. Briere would later admit that was a humbling experience and served as a wakeup call. To that point, Briere was difficult to coach and had it in his mind that his skill alone would keep him in the NHL.
I personally wouldn't have qualified him, but it's not like the Islanders gave him a huge contract. Once they qualified him and he filed for arbitration, this was more or less an eventuality.