He didn't drop in the draft because of talent. He dropped in the draft because he's old and he played in a pathetic conference against poor competition. With that said, he more than held his own against good talent when he played them - he outplayed Derrick Rose against Memphis by all accounts.
I think he has potential - more than is usually associated with a player of his age. His "NBA body" is just a product of his age - while young players (Durant comes to mind immediately) are still maturing physically when they enter the league, Hudson is already at his peak. Still, he's athletic, he can rebound, he can pour it in the basket and he's also a good defender according to the management. The skillset is there - what remains to be seen is whether the skillset is good enough to play out at a much higher level. Also, his academic history raises some intelligence questions. It's possible that his issue was just a lack of effort, but it's also possible that he's not the brightest bulb on the Christmas tree. We all know how we feel about Tony Allen...
I don't know. Like I said, I think he has potential, and I'd like to see him get the 15th roster spot so we can see what we drafted. With that said, the odds aren't in his favor.