The entire AFL is in the stone ages. No free agency is the biggest joke imo. If you have a decent salary cap and enforce strict minimum percentage salary cap restrictions, no one team would be out of favour (pending teams like Melbourne fix up their training venue debacles to attract free agents and re-sign players).
It should be a lottery system. The bottom 8 teams are all entered into a lottery, with the lower based teams having a higher chance of winning. So if you finish 16th, you get 3000 balls in the lottery. 15th get 1000 balls, 14th get 900 balls, 13th get 800 balls and so on, so at least then 16th still has the best chance (by far) to get the No. 1 pick, but any other of the bottom 8 teams also have a chance. If you win less than 5 games over 2 years, you get two positions in the lottery, and the 9th placed team gets the 9th pick as opposed to the 8th.