I haven't seen this discussed on this forum. I thought it would make for an interesting topic and I'd like to see everyones viewpoint. Personally I think MLB should address the "Shoeless" Joe Jackson saga and settle that before any discussion of Pete Rose is brought up.
There was an earlier thread about this topic: https://www.bigsoccer.com/forum/showthread.php?s=&threadid=24594 I posted there way too many times so I'll stay out of this debate (for now, anyway) And a Rob Neyer column from September that's pretty clear on where he stands: http://espn.go.com/mlb/columns/neyer_rob/1475194.html
After seeing Bob Costas interview Bud on HBO, it sounded like Pete is going to return sooner or later.
If there's no proof he bet on baseball as a PLAYER, then I'd lean towards saying yes. You can't take away what he did while playing. However, if he's ever in there, his plaque should mention his ban if he bet on baseball as a manager, and most signs point towards him doing that.