Bill Walsh used the H-back as a blocker for the most part, but he did get passes thrown to him, or ran the ball at times, if for no other reason than to keep the defenses aware he was out there, and needed to be watched. He started using Earl Cooper, and then came the guy who really defined the role, Tom Rathman. He didn't get a lot of touches, but he sure created some unique opportunities for creative blocking schemes that the 49ers used to continuously create mismatches that were difficult to overcome for defenses.
It isn't something that has been used much, but in the WCO, with Walsh's system, the guy was also a valuable asset in helping to allow Joe Montana and Steve Young opportunities to throw the ball, with more time.
If Dillon can handle the blocking, by lowering his center of gravity to get leverage, he could recreate that in a positive way to improve the passing game for Love, and the running game for the team. Personally, I think he can do it. Right now, I can't think of anyone they could find that would do it better.