I always thought it was overkill too and it's also a shame it ultimately forced out Hoskins. That said the Phillies still need an outfield bat. It's just that Castellanos was never a great one (and was supposed to move to LF to boot). And Dombrowski also overpaid him for past performance and out of personally overrating him based on their history (or his feeling about Castellanos's leadership/character). But there has not, and still isn't, a homegrown corner OF to fill what's still a bit of a hole (nor a 1B, if Harper went back to RF).
They did well in 2022 with Nick essentially being a non-contributor and then the same in 2023 with the likes of Cave and Rojas (though he obviously hit in the regular season). But I don't think they could afford to have Marsh in LF and a struggling Rojas in CF and a regressing Nick in RF. This is something they will have to deal with next season while making smaller upgrades this year.
But I wouldn't say there are actually "budget woes." We wouldn't actually want them to sign a veteran OF to a multi-year deal if Nick wasn't here. It will just be a shame if and when they have to give up a prospect to help offload Nick, even if there's a return
And I don't think they would want three $30 million starting pitchers regardless of what they are spending on position players. If Yamamoto was very interested in them they could figure it out for one year and then they'd have the luxury of lowballing Wheeler or letting him go. But like you say, I don't think they really want to (and he's more of a sure thing than Yamamoto, albeit only for 2-3 years whereas if Yamamoto works out he's got many more years ahead of him).