Insensitive? Yes. It's a horrible thing to say...so horrible, in fact, that he even pointed out that very thing. Is he right? Sadly, yes. Check the statistics if you don't believe it. But nowhere did he suggest doing it.
Yes, I did read the article, and it doesn't matter if he's just hypothesizing or actually saying to do it. He's still saying that black people are the cause of most of the crime in the US. That's like me saying if we killed all Jews Hollywood would stop putting out shitty movies.
He's still an idiot either way.
Shall we take murder as an example? There are numerous contributing factors to crime, many of which impact the black community in particular. This is not a condemnation of blacks at all...merely a statement of fact. Sad, but true: deal with it.
Bennett was making a quick analogy off the cuff in order to make his point, which had nothing to do with race and how it relates to crime. He was illustrating how addressing a problem (in the analogy, criminal activity) the wrong way (reducing the numbers of a discrete group with a high rate of contribution) might get the desired results (reduction in crime) but is not the right way to do it (nobody with sense thinks this is a good idea).
As for your killing the Jews to make Hollywood better argument, are Jews more prone to make shitty movies than Gentile film makers? If this is true, then, yes, killing them off would do so. However, bear in mind that you say that exactly the same way Bennett did: to make a point by confronting perceived absurdity (perceived because, regardless of how you take it, I'm still right) with further absurdity.