Can you explain why you want Loretta back so badly in 2007? I look at him and see a .300/.362/.386 hitter at 2B, which is largely replaceable production. I do not see him as a Bill Mueller, battling, fouling pitches off kind of hitter. He seems to be more of a hacker and doesn't see that many pitches (a hitting tenet of the organization).
Defensively, I like his smooth handwork once he gets to balls, but some have criticized him for his range going to his right. I personally haven't noticed that too much, but it's something to think about. He runs the bases adequately, I suppose, although he has no real speed to talk about. Overall, I see Loretta as a very bland, boring type of player who excels at doing only one thing very well: hitting singles.
Personally, I am ready to start the Dustin Pedroia era because he is ready for the show right now. I would not ****** the development of Pedroia by offering arbitration to a player who primarily gives you singles and adequate defense. I also doubt you will see Loretta offered arbitration in the off season.