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As the President is Commander-in-Chief of the Armed Forces though, isn't this a strategic prerogative of the position though?
Selling equipment that has been made obsolete could be a military prerogative, which is why the law is written like that, but selling below market value in exchange for a political favor is certainly not a necessary military power, and not one you would want a military to have.
Take the specifics out of it and think of it like gold bars. Does Treasury need gold bars? Probably. Say they have the ability to buy and sell gold bars to fit their legal requirements. Whatever, right? Who cares. That's part of their job. Now say the president starts giving away gold bars for free to his friends. Not really the same thing as "selling" anymore. That's obviously a qualitatively different thing.
That equipment and those gold bars are worth something, they were paid for by US tax dollars and revenue from a sale would go back to pay back the US debt. But they are being given away for free. So that is the same thing as giving away tax dollars. Which should be a Congress decision.