In 158 league appearances he's scored 66 goals. 14 in 30 for Milan this season with one red card. That's really not a horrible strike rate. Giroud scored 16 in 36, Benzema scored 17 in 35, Higuain 17 in 32, Mandzukic 18 in 30 (quite decent really)...for the sake of it, Remy scored 14 in 26 and Morata scored 8 in 23.
Cavani, Suarez, Aguero, Ibra, Falcao, and Costa (this past season at least) are in a different league altogether, and we don't seem to be getting one of those.
Balotelli is one of the better options we have to genuinely compete with Giroud, and is one of the few that looks to have something special about him. But Wenger will look at the stats and think Remy will fulfill the same function at better value for money. He's not exactly a disciplinary dream either, got a red card this season, and has been embroiled in plenty of his own drama. Not saying anyone here wants us to sign Remy, but if our interest in him is real then not signing Balotelli is certainly much more about the money than trying to preserve unity in the dressing room or some such.