Looks like academy. Still, I stand by the overall position (as you seem to, as well) that he's better off training with our first team and getting in a game or two when possible if he's even close to ready. We can always go and let him play games for his DA club on a semi-regular basis.
Personally, I think one of the issues that has held back youth development in MLS and in the US is the lack of kids given real training time with top level squads. I'd love to see that resolved and the residency program disbanded.
I think you nailed the second paragraph