I would think Fedde is gone...Rizzo seemingly doesn't take kindly to guys that take him to arbitration. This may end up being a blessing for Fedde's career...
Any other year, probably. This year? He's cheap, can pitch multiple innings at a level above godawful, doesn't cost much, and requires no long-term commitment. It might get him non-tendered after this year, but I can't see them cutting him or exposing him to waivers. He'd get snapped up immediately for all of the above reasons.