PFF has him as the #5 QB from what I see. From what I understand though, there was/is a wide range of opinions on Newman from scouts. And even the ones who are somewhat high on him, aren't close to 1st round high. Now, a lot can and will change between now and April, but there was an opportunity for improvement that he will now miss out on. Other ways to showcase it? Sure, but nothing that matches the position he would have been in at UGA.
I agree on it being a big loss. Just find the timing and reasoning very odd.