I will be disappointed if we won't sign Palacios but if we'll really get Firpo for the first team then it will be easier to move on as Palacios probably wouldn't have a longterm first team future at the club anyway though we'll eventually need a replacement for Alba too in a few years. There are not many quality fulllbacks in todays world and those are usually already at big clubs and expensive so looking for cheaper options, doubling/tripling down on that position with younger talents (Firpo, Palacios, Miranda) and see who will make it would make sense. We did something similar on the other side and bought Wague and Emerson eventhough we already have Semedo and Roberto who are both younger than Alba.
I'm also feeling for Palacios if appendictis (if reports from a few days ago were true he would have already signed for us weeks ago before Aucas apparently got this better offer) will prevent him to sign for us because it really seemed he wanted to come here and play for Barça B instead of PSV, Lyon or Ajax (don't know what plans those clubs had for him though).
Also, just a thought but wouldn't it be funny if Betis is the club who made a better offer to Aucas because we want to sign Firpo. This is very unlikely though because they've already got Pedraza on loan and are now looking for a more defensive LB if they sell Firpo.