Gotta say, I saw it that way too. All the publicity surrounding our link to Sancho, then two youngsters (not cheap ones either) that can play in the same position were snapped up. Made sense to me that the Sancho deal, for the time being at least, was dead. Rightly so at that price.
Diallo had played just 5 first team games with Atalanta while Pellistri had never played in Europe. These kids can be considered reserve players level at best. Sancho on the other hand would had been at least an 90m-100m signing. No manager in football history can afford to spend that much on a player only to immediately send him to the bench. The investors would rip his heart off his living body. Therefore these players are in totally different circles at the moment. It would be like saying that we're not signing Mbappe because we've just signed Mcneill.
As said in the previous post what fecked the Sancho deal was a mix between Dortmund being too greedy and Greenwood being too good to send to the bench. That dictated our strategy which also included opting for very promising reserve level players instead of the final product. Ultimately we can only have 11 players on the pitch, which means that if we buy Sancho then someone between Rashford, Greenwood and Martial would have found his arse on the bench. That won't happen with Diallo and Pellistri at least for the time being.
In my opinion we'll only going to buy Sancho IF Martial doesn't score enough goals, Greenwood ends up moving as STK and ends up winning a first team role and Diallo/Pellistri aren't ready for first team football. Even then, the club might opt for someone cheaper and more effective like Haaland and then move Greenwood back as RW.