I've got along just fine as an amateur arco bassist without knowing what a dominant 7th cord was all about.
At one stage, I could even play them in any key to get a Double Bass exam, but never realized why I was doing it, what it was all about or what difference it would make to my playing.
So, what is the benefit of being able to play these cords on bass?
I'm still not clear why it's called a dominant 7th as this cord is based around the 5th?
It's called dominant 7 because of the way the chord shape typically functions. As I mentioned previously, this shape normally functions as a V chord, which is very active and wants to resolve to a chord with a tonic function.
Here is a video that should help you understand what dominant means.
By arco bassist, I assume you mean you are playing classical, rather than jazz or some other commercial style. IMHO, if this is accurate, the value of being able to recognize and play the dominant 7 shape is somewhat limited.
For a jazz or commercial player, you often read chord symbols and improvise your own bass line. So you need to know the shapes for all of the 7th chords, rather than just the dominant 7 shape. This knowledge is foundational, and you need to know quite a bit more to improvise a good bass line.
Here is an example of a lead sheet with chords
This song is based on rhythm changes 1,6,2,5.
A dominant 7 (G7) is
substituted for the 6 chord. In Bb major this would normally be Gminor7. The G7 functions as the dominant to the 2 chord (C-7).
In the key of C minor, the V chord is G7. We would label this G7 chord V of ii. The term for this type of substitution is secondary dominant.
When learning to walk, an incremental approach is often used. You could play just the roots to start. For example you might see D7 and play |D,D,D,D|. After that you might play combination of root and 5th|D,D,A,D|. Next you choose from root, 3rd, and 5th |D,D,F#,A|. Finally you choose between root, 3rd, 5th, and 7th |D,D,F#,C#|
I use three terms to categorize the motion in walking bass lines. When you only play chords tones, like in the last paragraph, I use the term arpeggiated. The second category is linear. A linear walking bass line moves stepwise alternating between chord tones and none chord tones. It's sort of like playing scales. When you first start learning to walk, the none chord tones should be diatonic, meaning they belong to the key center. This means you need to have some idea for how the chord is functioning, which tells you the key center.
Example of linear: If you are playing over the following ii V chords |E-7|A7| in D major, you might play something like |E,E,F#,G|A...| As you see, you are playing stepwise up from E to land on the root of the next chord (A).
The third type of pattern is hybrid, which includes both arpeggiated and linear elements. For example you might continue the previous line with |E,E,F#,G|A,
C#,E,A| The first measure is linear and the second measure is arpeggiated.
In my experience, people tend to express a preference for linear lines. But some songs use almost pure arpeggiated lines.