The team needs Melky more as a solid option in the outfield, allowing the Yankees to spell Matsui, Damon, and Abreu, and help to keep them all healthy. Bernie can't play the outfield anymore. His arm was never strong to begin with, but there is no way he could play full-time.

That being said, I see no reason why he couldn't be an emergency reserve. And his batting skills, which have not deteriorated, warrant keeping him on the bench and ready to go.