this is not a good situation
as we are essentially a mediocre team
that is not considered a true contender + no franchise player
To get a franchise player is exceptionally difficult, no matter what approach you take. It requires:
1) Lots of work / planning to put you in a position where you have the ABILITY to get a franchise player
2) The pure luck on your side to actually make it happen
This is the case regardless of whether you:
a) Build via the draft - You need to suck enough to get in the lottery, you need to get lucky enough for the ping pong balls to fall in your favour, you need to get lucky enough that the guy you pick doesn't bust
b) Via free agency - You need to work hard to clear cap space, you need to work hard to make your team attractive to free agents, you need to get lucky enough that one free agent actually wants to join you more than any other team
c) Via trades - You need to work hard to build up assets that give you the value / flexibility to be in a position to make any type of trade that comes up, you need to be lucky enough to find a willing trade partner (who has a star they want to trade, who has salaries compatible with yours, that has use for your assets)
Every single method of team building requires an equal amount of smart planning and luck. This is why every second team doesn't have a franchise player, and why there are always so many teams who clear tons of cap space but don't get a star...or get high draft picks and end up with a crappy player.
Out of all the methods available the draft is risking because:
1) It's the only option that REQUIRES your team to be really bad (hence losing fan interest, ticket sales, etc) along the way
2) It's the only one that's completely unpredictable - nobody knows where the ping pong balls are gong to bounce. You could have the second worst record in the league and still only get the #5 pick.
3) It's the only one that involves gambling on players who are completely unproven - you can get a top three pick and there is still a pretty decent chance you won't get an impact player (e.g. Bennett, Milicic).
Free Agency and Trade routes are not GUARANTEED by any means. You can have all the cap space and assets on earth and still fail to secure a star player...but the draft is no different. At least this way you get to see your team win some games in the process, because I can assure you that it would have sucked BAD to be a 76ers/Kings/Wolves/Bobcats fan the past 4-5 years and watching your team put up losing seasons one after the other....and still have no certainty that you're going to be good anytime soon.