I really hope Ambrose is never turned babyface. The characteristics WWE gives its average babyfaces these days make my stomach turn.
it would be interesting, however, if they went with a tough, no nonsense, slightly off the wall style babyface. Ambrose is a character that one can be sympathetic to, his upbringing, struggling with his insanity and his desire for success despite it.
If WWE want to instigate a change of direction in the future, he would make a great edgy babyface, in the same vein as SCSA. he is a natural heel but he has enough talent to be versatile, he understands ring psychology and how to work a crowd enough to play a crowd (a talent that is lacking in 80% of the current roster).
an Ambrose redemption story could easily lead to it, still crazy but he tries to fight it, in that way he can easily sink back into a heel role by wigging out again and losing control.
time will tell though, put it this way, he has enough creative control over his character to not end up like Cena 2.0 and in that, its an improvement.