Also at the Dons' conference, Vito learns that Fredo has a genius for running a hotel out in Las Vegas. He is then put in charge of at least one of the Family's brothels out there. Not exactly kudos, but not the picture of the unskilled mendicant you paint.
Never said that he was
totally unskilled.
Look at what his brother did to him when he went out to Vegas. Fredo had found a form of satisfaction and was enjoying his life and what he was doing in Vegas, and he wanted to show Michael that he could do things on his own, that he was somewhat a success. And what does Michael do? He shits all over it. He totally degrades Fredo by showing no appreciation whatsoever for what Fredo had done to welcome him to Las Vegas.
First they banish him to Las Vegas. He gets abused by Moe Green. Then when he makes the most of it and begins to accept what's been handed to him, his kid brother comes along and shits all over it.