I haven't seen him play personally, but the reports from those who have day that he's a natural SS and should stick there in spite of his size.
I don't know if he's the answer at SS, but I think it'd be a mistake to not increase the team's talent via FA, with or without Kreidler. In the unlikely event that we end up with 2 good SSs, I'm sure we'd be able to figure it out.