I think Lou buys out Volchenkov at the end of the season.
The fact that he's still in the lineup but getting the lowest icetime on defense is pretty telling. You're paying a guy $4.25M, and that money is being wasted in the press box or Albany. It tells me that Pete obviously knows how bad he is, but can't take him out of the lineup, and is trying to shelter him the best he can.
The other thing people are overlooking - this team isn't going to be perfectly healthy for all 82 games this year. Someone on that defense is going to get hurt and we'll need someone to step in. When that happens, Volchenkov will still be getting 13 minutes a night while Fayne/Larsson get to come in and be the hero.
Even if Volchenkov was the #7, he'd be in the regular rotation after one injury. With the age of our defense it's only a matter of time until someone gets hurt.