Does it make sense to anyone that breakdancing will now be an Olympic event but baseball isn't?

I think it is a dumb idea. I know breakdancing is very athletic but even though I like  sporadically watching some obscure sports there are a bit too many of them in the Olympics and it can be overkill. 

Breakdancing belongs in a dancing competition.  After all, there are Waltzing competitions. I don't think there is criteria that a sport has to be popular in all parts of the world and be multi-culturally practiced  so as to be in the Olympics. Baseball may be "American" but it is  a big sport in Cuba and in Japan. I don't know if Sumo wrestling is in the Olympics but maybe it should be.

What doesn't make sense is that masturbation is not an olympic sport.

As many others have mentioned, baseball is NOT international. Only the US, Canada which has one team in the major leagues, Japan and Cuba play any amount of "real" baseball. I'm an American and like major league baseball, but realize that's it's basically just a local American sport.

Easy.  MLB never signed off on releasing players for an Olympic tournament.  Any sports being added have buy-in from leagues/national federations on releasing players.  Rugby sevens got buy-in from World Rugby and they created a 'window' for participation (and not scheduling any event opposite an Olympic tournament).  Golf got the professional tours (PGA Tour, European Tour, LPGA Tour, Ladies European Tour) to work with the International Golf Federation and create a window.  In both cases, both sports agreed to send their best players (yes- several potential participants in the golf event backed out over Zika virus concerns).

Then there's MLB who never signed off on shutting down over the Olympics (the NHL shut down in 1998, 2002, 2006, 2010 and 2014; they didn't shut down in 2018 but will shut down in 2022 and 2026) or sending players over for an Olympic tournament (scraping a bunch of minor-leaguers isn't close to enough).  The IOC wants a 'best on best' event, and until baseball agrees to this, it's not going to happen.  

Yes, because breakdancing is done throughout the world, while baseball is only an American sport, though it is also played somewhat in Canada, albeit Canada only has one major league team-- the Toronto Blue Jays. 

People in Europe, Africa, Asia, and South America don't play baseball, most haven't even heard of baseball. If they have, it's only because of seeing it depicted in American movies. Baseball is as totally foreign and as unknown to the rest of the world as cricket is in the United States. 

Breakdancing, though, is done pretty much everywhere and there are already worldwide leagues and international competitions in breakdancing where countries from around the world send teams who have won national championships to compete.

I mean, haven't you ever wondered why the only teams that ever play in the World Series are American?

Perfect sense. Baseball is crap and only yanks like it, you can't expect the rest of the world to join in with such a snooze fest.