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I think it's adorable though I would never use it myself. It's kind of nicknamey and a bit macho but I still like it. I also like the meaning. It's definitely usable in my opinion.
I pronounce it Ben-no (not Beano) and I'm pretty sure that's the correct German pronunciation.

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I would use a longer middle name for Benno. Something like Benno Alexander, Benno Sebastian, Benno Mathias etc