Discouraging tanking requires flattening the odds (decreasing the gap between the chances of worse and better teams within the lottery). Then there's less to gain by losing more games, so you'd expect tanking to decrease.
Problem is the league already tried this, first with the "one team, one envelope" setup, then with the flatter odds of the original Ping-Pong ball format. People didn't like it, so they switched to the current system.
At the very least I'd like them to draw for all 14 lottery spots, instead of just the top 3. That reduces the advantage of moving down a couple spots in the rankings late in the year. But ideally I'd like them to move closer to the unweighted "one team, one chance" system of the past. Closer you get to that, the less tanking pays off.
The problem with the One for One system is then who wants to be the 8th seed? You can get swept by Miami in the first round or have an equal chance of getting the top pick. You'll have the7th, 8th, 9th, and 10th seeds all trying to lose more then the other.
You're right that the 8-9 positions is where all the tanking incentive comes in. The problem is that a team tanking to drop out of the playoffs would get far more league scrutiny, negative press, and fan backlash than a team trying to drop from the 24th to 27th best record would. That's a ton of flak to take on for a 7% chance at the top pick.
Frankly, I think if a franchise wants to miss the playoffs, let em, they don't deserve to be there. A hungrier team will always be there to take their place.
In theory the lottery should work. And it does. How many times has the worst team gotten the first pick? Tanking doesn't work. The problem is you can't account for people. If you are saying the Celtics are tanking then how come they didn't learn from the last two times? People don't understand odds, that's why Casino owners are called billionaires.
Casino owners are also people - it's true that most people are awful with probability. But it's also true that some people are very good with probability, and often can gain quite a bit from people who suck at it, because knowing the odds allows you to profit on average, even if you lose some along the way. For instance, past lottery outcomes have zero impact on the likelihood of future outcomes. There's nothing to learn from them unless a team never understood the odds in the first place, which seems really unlikely.
Tanking works overall because the way the system works, you can never drop more than 3 spots below your finish. The team with the worst record probably won't win the lottery, but they have a 100% chance of a top 4 pick. You're guaranteed a great pick even if you aren't guaranteed the best pick. That's why I'd like to draw for all the lottery positions - to remove that guarantee.