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Well, why can't the local developers organize a conference without Python Software Foundation blessing?

They could. Or they could just not organize a conference at all:

>More than one of us confided in another that we wished we had never started the project.

One way to think about this situation is that the PSF exists to promote Python. If their slow grantmaking process is giving organizers such a headache that they wish they just didn't organize Python events, the PSF is failing at its mission.

They can. They feel entitled to funding. Rightly or wrongly, I don't know.

In my reading I think they first and foremost felt entitled to a clear answer.

IME, I've learned to take an unclear answer as No.

We always have local python conferences in Africa without any outsiders financial contribution.

The reason why they expected the contribution is because they are sort of official

Being "sort of official" doesn't really seem like it should guarantee much of anything

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