I like it. Seems a little extreme though, I agree with ash about using players that I like. Sure, there will be someone guys that are rarely drafted that I like... but still. Maybe the first 3 rounds
The big problem I see with it is that it encourages losing the first few years to get good players... or winning and then dropping out.
I'll probably join any of the ideas if it seems like a self-substaining league with good owners that will make an investment of my time worth it.