Great news that the change was not passed. Horrible proposal, mostly just because of Philly. It would have been a disaster for small market teams.
So long as teams are playing who they have, I don't have a problem with teams trading talent now for assets later. If a baseball team did what Philly did (Marlins, anyone?), no one would think twice. It is a valid move. The difference it that the first pick in the NBA has a lot more value than in MLB. But so what? Teams still need to be able to make the best moves.
None of what I said yet addresses the draft positioning. The problem with the proposal is that the best rookie talent should, ideally, be distributed either based on what teams are the worst, completely randomly, or through a balanced schedule (you get a #1 once every 30 years). The problem with the latter 2 is that the best free agents tend to towards the largest markets due to endorsements. With veteran talent clustering in big markets, the smaller markets need the draft to get top talents. Their best hope is drafting a star who will stay out of a sense of loyalty, like KG or Duncan.
All the hate on Philly is a little silly anyway as Cleveland has won 3 of the last 4 lotteries. In fact, Cleveland won last year without being a bottom feeder so where is the problem? Kudos to Philly fully committing to young guys.