At a high level, yeah, I do believe from what I've seen that higher makeup plays a role in player development and injury recovery.
Is 25 considered "bad"? I mean, would you consider a Contact rating of 25 bad? Sure, but like everything else it's relative. I can't tell you what it actually means in terms of the number of ratings points that guy would leave undeveloped versus a guy with a 65 or 95 makeup but I think it's safe to say if you can expect a player like that to increase a little less than a similar player with higher makeup over his first 5 years and to probably hit declines a year or two earlier than others with higher makeup too.
Could still be a useful player, just might not be a 15-year pro.