Not at all.
Sure Chelsea might opt to buy him back, but loans don't see the loaning club make a huge profit. Plus the buy back clauses like Chelsea have normally have cut off dates.
Both systems will probably have their uses throughout the season. Not only match to match, but switching it during games for different scenarios like today.
1) Newcastle's squad really isn't great, let alone 'much more quality than us'. Burnley finished below us last season.
2) That makes no sense what so ever.
Plus in any case both have had relatively recent relegations from the Premier League.