Honestly, given the labor costs and the values of used guns, its probably not much of an income return for a PD to bother with selling. I could understand a company contracting to decom guns and selling the parts, but its not going to be a huge market. Cars, maybe, but even then, I wouldn't be shocked if the average "police auction" just ended up as a charity thing. Stuff tends to not have value, and since cash can be seized, its more likely that would be an actual income function. But of course it all comes down to a case by case basis on each location. Trying to apply one set of circumstances to all locales would be foolish. Miami Dade probably would have more high-performance boats than say Casper Wyoming.
As for Benchmade being asked to destroy their own product, I don't see the concern there. If due process has been followed what else would they do? Clean it up and sell it again as a factory second? What happens in places where the ATF registered disposal shop is an AR-15 builder, and they get one of their products back under these conditions? I'd rather buy from a company who is upfront with doing what they say they will do, rather than one that hides behind the politically acceptable dogma of the day.
Its pretty obvious at this point that there are a few in the discussion and probably more on other platforms who were never going to wait for an honest response anyway, and the overwhelming voice has been that Benchmade is now persona (corporatus?) non-grata and there was never any plan for good faith to begin with. We still do not know if the guns were suitable for sale. So any talk of morality or logic is a pretty big pill for me to swallow.
I get that this is a touchy subject for a lot of folks. I'm not going to discount that. But knee jerk reactions, raging out, and throwing a tantrum doesn't allow for reasoned debate. I have no skin in this game, but if I did, I'd walk away, because there is no winning here. That's been decided already by some here.