I think the Yankees wasted the money long ago, they have to pay him whether he plays or not. I have never been a fan of his, he never seemed to be a likable player when he had something to offer.
I assume they are letting him play because they are still paying him. I don't think they will play him as much as he is hoping they will. I don't imagine the front office will force Girardi to play him and Girardi never seemed worried about hurting his feelings.
As for wasting the fans time, it is nothing new for the Yankees to waste the fans time on overpriced, over the hill baseball players (see the 1981-1992 ish). Luckily for Yankee fans they have a history of putting together some pretty good runs when they do get their act together.
Personally I don't think he will produce and he will be such a negative influence, that they will release him before the summer is over. I don't feel like I am going out on a limb with that prediction.
Go Yankees.