Diame is a bit similar to Sulley Muntari in my opinion. Technically able ballwinner who will inject a lot of energy into the midfield. Muntari wasn't the most talented Inter player in that Champions League winning team but there's a reason Mourinho always played him when he was available.
Anyone who takes a serious look at Arsenal these days would have to agree that we're lacking those exact abilities, and that they've never been a big part of Diaby's game. Coquelin is a better fit in that case but he's injury prone and inexprienced. Still seems to be two years away from what we really need. If you take all this into account then it's easy to see how Diame could fill a real function for us.