Fortunately, Im enough of a newb here that I havent really seen the tanking up close and personal (or at least I dont think I have). However, I have a couple of ideas that could help. I thought this would be a good thread that those of us who have thought about it could throw down their ideas....
First, I think it would be a good idea for WIS to have a fun little ranking system for owners. Give owners plus points for a certain number of wins, improvements year over year, playoff appearances, etc and give them negative points for the opposite. I think that would work at some owner's egos to keep them wanting to win rather than lose. Think something like the ladder system for yahoo! games. Easy to implement and would keep the competition going more years than not.
Second, I think maybe there should be some tweaking to the rewards structure. Obviously, some owners feel its better money for them if they tank for several years and put something together in hopes of winning a couple of world series to get some free seasons. Why not cut that reward a certain percentage and increase those that make the playoffs a certain percentage so that WIS still sees the same return and players are more likely to fight for making the playoffs rather than have 3 or 4 losing seasons in a row to build a super team.
Third, I think the diamond in the rough thing should be looked at more. I think its a great part of this game to get those emails mid season. I think you should also have some sort of disappointment/letdown feature for prospects. "This guy has really let us down" email to let you know that the studly prospect with a crappy attitude decided to get high and screw around rather than hit the cages. I think that would help a lot more and I think you could work that into the prospect budgets. Maybe teams that have 15+ advanced scouting "Can see some upside potential" or "future concerns us". You can take a page from GD in this regard or tie it to temper or something else. In both cases, multiply the number of these types of prospects by 3 or 4 times the current number and things would get much more interesting. Teams would be less likely to pin their future on prospects only and maybe other teams would be willing to keep lots of money in training and advanced scouting to study potential DITR's for the future. Plus, it would certainly be closer to real life without losing the great thing HBD has right now.
Those are just my ideas. I never have the desire to tank teams because I have no patience for losing like that. I would rather carry a $130 million budget and see where that gets me.