Yours is a non-traditional case, admittedly. But the reason to put it on the arXiv in one sense is that appears in the public domain immediately. It can take anywhere up to 2 years for a paper to appear in a journal from submission time (and anything less than 9 months is rare), assuming it is even accepted. I recently had a paper rejected from a journal after 9 months from the initial submission. So don't hold your breath.
The reasons not to bother submitting to journals instantly are long, complex, and very odd - in the UK there is a pressure to submit to journals because of something called the RAE, which assess a department's worth. It is easiest to do well in the RAE if you have 4 journal papers in the 7 years previous to the RAE date (currently Dec 31st 2007). You can submit non-journal papers but they get close scrutiny, but you cannot submit more than 4 papers, period. Thus if you have good papers in journals and 2 good preprints, you submit only 1 of the new preprints to journals, and hold the other one back until after Dec 31st 2007 so that you're more employable later on when departments are recruiting people to try to boost their RAE scores. It's rubbish, really. And it isn't your situation. The point for you is that it puts your result in the public domain, with your name on it quickly. Far more quickly than any journal publication attempt. Also, you put it there, other people notice it, read it and give you feedback, thus potentially saving you from months of waiting for a referees report to comeback. View it as a free peer review/cooling off period when you can sit back for a couple of months after writing before deciding if you really want to submit it to a journal, and to which journal etc. You might suddenly decide after a month that you hate the way you wrote it.