It 100% is sportswashing. Don't think many thinking Newcastle fans would argue any different. There'll be three camps, a decent sized minority who'll leap to the defence of the Saudis in a "SUPPORT THA TEEM" response, a small minority who can't stomach it (and fair play to them and the courage of their convictions), and the vast majority who can will happily criticise the Saudi regime, while still wanting the blood money to propel the club from the doldrums. I'm in the latter camp. don't get me wrong, I'd love to be taken over by an owner who made untold fortunes through altruistic good deeds, but lets be honest, few billionaires are wealthy by virtuous means.
You're definitely right, the CL may be a leap too far for the foreseeable. The best models are yours (to a point), Leicester and Wolves. Appoint the right men, recruit well and make progress. From an outsiders view, your issues seem to lie with those with ultimate power being unwilling, or unable(?) to kick on? I thought Pochettino was a match made in heaven for you, but he either wasn't trusted, or wasn't supported in the transfer deals.
He's certainly a manger I'd love to see manging our lot, whether he'd join a midtable club in flux with ambitions and aspirations, but no European football on the horizon, is another thing entirely.