Well, if you do re-sign him anyway, then there's no excuse to give him anything but a $550k 2-way deal. No other team will sign him. No other team will play him. That probably would have been the case last season too. So he has zero leverage on the contract, and if you are going to fight tooth and nail with other players over (relatively) minor amounts of money, I would be annoyed and frustrated to see him get $1M or $1.5M like last year or something like that, just on the negotiation principle.
I don't even want him on the team as a #7/8, nor particularly in the minors as a #9/10, but even if I was going to accept the "you can never have too much depth on D" argument, then I still wouldn't see any justification for giving a contract to him that no other team in the league would give.
But I still don't honestly believe that Bergevin is foolish enough to sign him.