That brings up an interesting case. Are you saying there was traffic that had been ordered to "line up and wait" and you had an active touch and go clearance at the time?
As your spider senses were telling you...that is no longer legal. If that happens, ATC should cancel your touch and go clearance and tell you to "continue". Only once the traffic in position starts their takeoff roll can your touch & go or landing clearance be issued again.
This rule was instituted (at least based on my understanding) to avoid a case where traffic was cleared for takeoff, an aircraft was put into position and hold, and then another aircraft was cleared to land, the controller anticipating that he'd "get the guy out of there with lots of time." Well, then there's a distraction or a land line call, and before you know it, the landing traffic has an intimate encounter with the aircraft in position!
I'm not positive that's what happened without listening to the recordings....but at the very least, this is a useful thought exercise and a good reminder to all pilots to be vigilant in traffic patterns and busy terminal areas. "Trust, but verify" when it comes to working with ATC. Remember, if your're wrong, you die. If ATC is wrong.....you die
