Don't agree with the handing out of Priority Picks given the secret formula they use to determine who and when they are handed out.
However, what I am a strong advocate for is the introduction of a Priority Draft Round which sees all of the non-finalists get an extra pick (according to ladder position and in draft order) prior to the First Round proper.
It would look like this :
Picks 1-10 : Priority Round
Picks 11-28 : First Round
Picks 29-46 : Second Round
By bringing this in, it automatically helps the under-performing teams and re-distributes talent where it is needed. If you have just played finals, your list can't be that bad so it is not in as much need for new draft talent.
Furthermore, if a finalist wants a pick in the Priority Round, then they have to trade a player of value to get it which once again goes towards the principle of evening out the competition.
As it is, the system is geared up for teams to build up over a period of time and then have a reasonably long period of dominance before falling back down and going through the whole process again.
What we aren't seeing is teams come from virtually nowhere and have an impact which if it was to occur, would add way more excitement & theatre to the competition.
The other thing this system does do is reward good management (or encourages it) as shrewd decisions can yield better results in a shorter amount of time.
I like this idea but I would combine it with a lottery for the top 20 picks based on games won/lost like the NBA. That way a really bad side would be more likely to get two early picks and a side which finishes 9th would be more likely to get two picks in the teens.
If they introduced this system they could probably remove the compensation picks for free agents.