The squishy noise you hear would seem to me to be more likely associated with the brake. And, if the bearing was that shot, you would feel some serious wheel bearing roughness and wobble as you rotated the wheel.

To get it off, lower the jack until the wheel is touching the ground and bearing some slight weight. I have a hydraulic bottle jack for this, which is much more stable than the MB screw jack that comes with the car. Block the car up at that point with wood so it won't fall over when the wheel comes off. Let the jack down to put the car's weight on the blocks of wood. Then turn the wheel a bit, back and forth. Start the car if you have to. I had a new wheel stick on a C230 and no amount of kicking and banging worked. This did.

Jim

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Own:
1986 Euro 190E 2.3-16 (291,000 miles),
1998 E300D TurboDiesel, 231,000 miles -purchased with 45,000,
1988 300E 5-speed 252,000 miles,
1983 240D 4-speed, purchased w/136,000, now with 222,000 miles.
2009 ML320CDI Bluetec, 89,000 miles

Owned:
1971 220D (250,000 miles plus, sold to father-in-law),
1975 240D (245,000 miles - died of body rot),
1991 350SD (176,560 miles, weakest Benz I have owned),
1999 C230 Sport (45,400 miles),
1982 240D (321,000 miles, put to sleep)