It's very unlikely that the Philippines would ever turn on the United States and be able to do any significant damage. They are one of the more free countries in the region, and it would be better to arm them and help them defend against outside threats, than to let them be taken back over by communism. It would help us strategically secure our position in the region, so we should arm them.
Eisenhower warned of the military industrial complex that saw the proliferation of weapons of mass destruction and weapons to counter them and the U.S. must recognize that their weapon sales to foreign countries has had a destabilizing effect in many places and worked to our disadvantage. Countries that are politically unstable and subject to regime changes and radical fundamental takeovers, such as the Philippines,should not be getting weapons from us that may some day be used against us by hostile administrations that were once allies..
Although it's tempting to think that there's a moral reason to simply not sell weapons to the government of The Philippines, the reality is that the United States should not be in the business of selling weapons, period. When we export our weapons of destruction to other countries, those weapons are used, and the populace of that country gets another reason to hate America. If we want to be the moral police of the world, we need to act like it and not just give the idea lip service.
No, I do not think that USA should sell weapons to The Philippines because their leader has insulted the US too often. Why should we work with them? Until the leader apologizes to Obama and to the nation, we cannot work with nations who try to undermine us in any way.