1.) We're talking about having a DH not a utility infielder. No one is saying "get rid of Escobar", just that having Escobar DH is ridiculous. It's Jason Tyner 2.0.
Escobar's career OPS = .682, Grossman's = .723. Grossman's OPS vs. righties (his weak side) = .696. Escobar vs. righties = .659. You might as well use Grossman (who is a solid platoon partner but not a full-time DH and not useful against righties) than replace him with Escobar. If the question was "DH Sano and Escobar plays 3B vs DH Grossman and Sano plays 3B" I'd get your point but if we're talking DHs (which we are), it's insane.
2.) Palka is an interesting option no one talks about. He hit righties and lefties pretty evenly in the minors in 2014 and 2016 (though not in 2015 to be fair) and is a much better bat at 1B than Gimenez on days Mauer sits. And when the Twins play righties (70% of starters) they'd be able to DH Palka instead of Grossman, who slots much better into a DH-vs-lefties/bench bat role.
Palka is a viable option besides Vargas/Park. He doesn't solve the lefties dilemma but that's only 30% of pitchers. Let's solve the 70% problem.
Palka would have to continue his current plate discipline to have a shot.