I think this is probably the right decision. If we are trying to build a squad that will be at top-end League Two / League One standard in the next couple of years, Ritchie is not quite good enough. He has generally been at Conference or low-end League Two sides, and I think Ellis has a slightly better CV. Neither player is good on the ball, but Ellis is more mobile and has looked good this season. As has been mentioned, we will miss Sutton's goals from set plays. No other defender has scored this season, as far as I am aware.
I don't think you can assume that because more players have departed than arrived, that our wage bill has gone down or even stayed the same. A player like Perkins, who has been in The Championship most of his career, while be on better wages than those we picked up in non-league. Palios has said extra money was made available, and I think you have to trust him.
I see the moves in this window as part of the longer term process of moving on players who are not quite up to the standard we need now, and I would guess Stockton, Harris and probably Tollitt will all go in the summer, possibly along with one or two others.
Good luck to Ritchie.