That PVP weapon is terrible for PVE so the hilt would be a huge upgrade for her as Arms and if she ends up coming into a 264 weapon or one of the ICC10 man weapons she could go Fury.
It mostly comes down to which playstyle is more fun for her and what buffs the guild needs. The buffs Fury warriors bring are also provided by Ferals and the buffs Arms warriors bring are also provided by certain Rogues (IIRC).
That being said, please tell your friend to get to the 263 Arms hit cap.
As far as whether or not the battered hilt should go to someone else... that's up to you. But random loot is random and she may or may not find something that would replace it soon. It certainly will last until she gets 2 ICC 25 weapons.