I think the British did view the .303 as obsolete but with the size of the British Empire at the time, they probably considered it far too expensive to change plus there was still the concept of single, well-aimed shots and the ability of most British soldiers to lay down a decent amount of fire from their SMLEs, (plus it was quite robust, able to take a lot of abuse, so why change something that works and works well)
I think they believed the financial cost probably wasn't worth the effort when they felt there wasn't any imminent need to change.
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