Yeah, I definitely don't like this idea. It just increases the incentive for teams to tank. At least now the notion that tanking will get you a great draft pick is not 100% guaranteed, so there's risk involved in trying to land a great player. Not to mention the fact that you will have to spend a decent amount of money to scout sufficiently to get that good player, and even then, when you pull him, there is the chance that he has a poor skill distribution (think, a 5 star guy labeled as an SF, who despite great JS and RB has totally crappy OD/IS/ID).
In fact, I think given these uncertainties and the cost of adequate scouting, teams tanking with the idea they will definitely land a great draftee are probably mistaken.