As far as the Hall of Fame goes, there's no way the all-time saves leader doesn't get inducted.
You can understand in a way why they stick with him. Again, all-time saves leader, he's spent his entire career with this small-market team and the Padres are simply reciprocating some of that loyalty. It would be kind of cold and humiliating to strip him of his job because of those blown saves, costly as they might have been, to end last season.
Having said that, baseball is a business, and they've got a pretty good closer-in-waiting in Heath Bell setting things up for Hoffy. If he continues to blow saves, and Bell continues doing what he's doing, a change will come. But Hoffman is gonna have a little longer leash than most.
Remember too, among all-time saves men, Hoffman has one of the lowest blown-save percentages. He's earned that little extra goodwill.