Preface: I don't totally understand arbitration, so I may need to be corrected on a few things.
It seems to me in the Giant's best interest to offer Bengie arb. At best, Bengie is signed by another team regardless and the Giants score a draft pick (the other team's first round pick?) and can set aside the resources for somebody like Torrealba.
Worst case scenario, other teams decline to give up a pick and Bengie returns for a year, cheap. I'm not totally opposed to that provided he bats in the bottom third and the Giants still attempt to address their dire need for guys that can get on base.
Does Bengie have to first decline arbitration to be available as a free agent? Or, if no other team signs him, he then enters arbitration talks with the giants? It's a bit confusing for me, but seems like arb is a good deal for the Giants.