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*While dumping his salary certainly doesn't help your team's ability to sign free agents, paying that salary and leaving 1/9th of your lineup as a black hole and preventing your young talent from moving up is worse.
What exactly do you propose?
Either an extended "DL" trip to see if he can "work on" his swing without being a production-suck on the big league roster or you package him in a deal where you likely eat 80% of his remaining salary.
You continue to pay the guy and hope he figures it out if he's hitting the league average or a little worse.
To continue to pay him while he is putting up a -1.4 WAR and is literally one of the worst everyday players in all of baseball is crazy.
I imagine the thought process right now is to give him probably one more small "reset" as we head into the all-star-break and hope the extended break and "fresh start" of the 2nd half gives him whatever he is lacking (confidence, strength, whatever).
If he doesn't bounce back then, I think it's almost a certainty he gets dumped. Something has to be done with Gallo - because right now the only thing he has left to do is lose value in the minors... So it's either give him a legitimate shot to play in a perfect position (one where you can't do any worse than what you've got), or you trade him and leash yourself to Prince Fielder for the next 3 seasons.