My guess: Ollie knows that getting diallo could help put us back on the national conversation. So to To lose out on a high level recruit in our back yard would be a blow to this programs reputation in the eyes of recruits. Especially since things are tough right now and we NEED to stay recruiting at a high level.
Our NBA presence is diminishing. No young people Know about ray, rip, Caron, Rudy... we have Andre Drummond and kemba--two great ambassadors for the program. But we haven't put someone of not in the league in 4 years now. That won't let you keep up with the big boys.
We can't afford to back out on a pretty good big, but we are fairly deep at the guard positions, and very good at recruiting high level guards. So yes, I think it would be okay to back out on a Beatty. IMHO 6'2-4' athletic shooting guards are a dime a dozen, but don't often pan out when they get to college when they can't bulldoze into the paint (think Rodney).