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if you set your minor league lineups and handle that stuff, this setting won't matter for your teams, but it will affect the AI.
about somethign above:
after playing around if you use potential (and likely current), it doesn't necessarily put higher potential players at the top of the lineup in my experience. the better hitters still bat near the top as per their current ratings. (always use potential for minors, definitely see them at the bottom if poorly rated)
all this setting does is choose between current ability and potential. so, the argument about a no-hoper screwing things up in AAA shouldn't occur. a lowly rated potential player will not take the spot of a higher potential -- unless you use current ability and their current ability is better - which is significantly more likely to occur. (it's possible it's more complicated than a simple pot vs pot comparison, but nonetheless it's the basic concept being employed - same with using "current")
if you want the team to win more, use current ability. if you want players with the highest potential to get the most games started, use potential.
however, if you force roles for better prospects in addition to using the "current" setting, you will get the best of both worlds.
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