I like that idea, Reuben. You could also do a straight up lottery. Sometimes previous years rankings might not be the best way. The team in my sig was a bottom dweller last year - I took it over mid-year. Immediately tore down to rebuild, but with the environment of my league, it was worth it to take my stock piled prospects and put a solid team together.
You could make the lottery draft a snake one, so it's not sooo bad on the guys drafting at the end of round 1.
Ultimate Dynasty League
16 Team Dynasty League H2H: G, A, P, PPP, SHP, +/-, PIM, SOG, W, L, GAA, SvPct, SHO
C: Stamkos, Getzlaf, Carter
LW: Ovechkin, Kovalchuk, Brown
RW: Iginla, Pavelski, Horton
D: Byfuglien, J.Johnson, Goligoski, Hedman, Hamonic
G: Schneider, Hiller,
B: E. Johnson, S.Kostitsyn, Neil, Biron, Giguere
Prospect: Nail Yakupov, Tangradi
UHL Dynasty St. Louis Blues
...a bad team trying to rebuild...