It’s a complete unknown if he can handle the cut or not.
You are completely ignoring how this benefits the team. Some people are willing to make sacrifices for the good of the team, and it is undeniably a better team with him at 57. If that doesn’t happen you squeeze either Arnold or Kennedy out of the lineup and replace them with Estrada or Voinavich who don’t have near the same point potential.
You're right, it is unknown if he can handle the cut. I can say that in recent years I can think of many who have successfully went up in weight later in their careers. I'm struggling to think of an example of a top 4-5+ year guy cutting down and improving. I'm sure there are a couple examples I am not thinking of.
And I am not ignoring the team aspect. IMO a relatively sure 2nd place finish with a chance for a big upset + Estrada/Williams is not "undeniably" worse than questionable results with a large cut + Arnold. Don't forget Kennedy would be cutting back too. Has he outgrown 165? IDK.
I don't think anyone is questioning you on whether it has been discussed or even whether Caliendo himself brought it up. I have no doubt it's being thought about. I just don't believe it would be a wise decision for either the wrestler or the team, but we shall see.