If nothing else, this is proof that contracts in the world of sport can seriously harm an international player and, to some extent, I think it strongly injures MLS's position on the world stage. Think about it: If you were a world class player and you wanted to join North America's premier football league (for travel, for team-building, for money--whatever) and only after the ink was dry did it hit you that, even after a whole season, nothing changed despite your best efforts, would you recommend it to other players?
To no small extent, nobody wants to play on a nobody team. But often times, a nobody team goes out of their way to get a star and his leadership and/or talent turns young buds into skilful supporters, and the team as a whole becomes more attractive to established talents. Think of MLS as a "team" with other groups (English Premiership, German Bundasliga, La Liga, etc.) as other "teams" a player can choose to move-to or not, and one really gets a picture of an owner, GM, and manager combination which is not willing to press the franchise forward.
Beckham, in this case, should be let go. The MLS and L.A. Galaxy are being jerks about him, basically holding him hostage against his will. Granted, he signed the contract and that was dumb. But in the future, when talent either new, old, or retired considers coming to the U.S.A. to help build football's popularity here, they're gonna have to think "Yeah, but remember what happened to Becks?"