They'll certainly be more unhappy with the draw than Newcastle should be. You were by far the toughest pot 4 side where as you were always likely to get 2 strong sides in your group. Getting Milan from pot 3 makes it a bit harder than you'd have liked but if Milan or Dortmund were in the PL, I wouldn't say they were very likely, if likely at all, to finish above Newcastle.
As I said, having 4 strong sides in a group makes it a bit of a lottery because other than PSG's home games, any result in any other match in your group wouldn't be a shock.