DT, I agree completely with your analysis. I'll add that Vito wasn't quite sure about what to do with Fredo. However, I think this is interesting. As you point out, he thought Fredo's sexual cavorting was degeneracy. However, he was delighted to find out that Fredo had a genius for running a hotel. That was a surprise to him. Yet, he also referred to Fredo (in that capacity) as a cook. He was obviously disappointed.

"Generosity. That was my first mistake."
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