If he would be blocking an actual roster spot, I agree. But right now, the reality is the Kings are competing for the playoffs. If they make the playoffs, having more experience is better in a pinch. To me, it makes less sense to force youth in a roster spot during the playoffs because you don't have any other able bodies - it's just poor planning and mismanagement of depth.
Going forward, they should waive + assign to Ontario. Make use of the current roster spots to rotate the youth and give them experience.
If they struggle in the playoffs, AA can be brought up. Conversely, he can also help Ontario, since a lot of good talent has been called up to the NHL and the AHL team could use success.
Trading him for picks is counterintuitive to organizational direction, as he wouldn't bring much value in a trade.