Ideally, i would rather give Pepes minutes to Vieira, ESR and even Marquinhos if we think he has potential. Pepe doesn't have a future here, hasn't been good enough and should be sold next season, was generally a good idea to send him on loan to raise his value
Having said that, not replacing him is a mistake if we really are trying to fight for all the competitions, the other options are far from guaranteed to be relied on, especially in their first season.. Maybe they have seen enough with either of them in training but even still would be a risky strategy.. Pepe is decent against weak opposition and would have been useful in EL and early cup games. Hopefully there is still business to be done.