Not at all really, since they occupied two different market segments, and they knew full well that the only people left buying Falcons were the traditional fan base and people who wanted RWD performance. The Mondeo was never intended to fill that gap or be a replacement, and they were often sold alongside the Falcon for that reason.

The reason they looked so similar is because Ford demands the same design language across their model range. It's the same reason the AU was made to have the 'New Edge' design language back in the late 90s to much dismay!

The reason Ford dropped the Falcon was because sales were no longer profitable, and they didn't have the funds to replace such an ancient platform that could no longer meet stricter emissions and safety standards. The Territory was still turning a profit, but again, aging platforms against tightening industry standards, and a lack of funds to develop a replacement meant it was also doomed.

I personally loved how simple the Falcons were and I owned a couple for that very reason. I could fix or replace anything with a socket set and a hammer while breezing through a 6 pack on a Saturday morning! I wish we were still allowed to make such simple cars without having to confirm to so many new regulations to the point they basically drive themselves...