Another issue I see is how this would effect free agency and trades.
Think about the big free agent summer of 2010. Maybe LeBron chooses LAC, or Chicago, or Brooklyn, or New York if they're slated to have one of the top picks in the next few years.
Think about Bosh in Toronto. Toronto had the #1 pick in 2006 which they used on Bargnani. According to the wheel, they'd have picked 30, 19, 18, 7 bringing us up to 2010 free agency. Bosh split town anyways, but I don't think having pick 25, 23, 14, 11 over the next 4 years is going to help him stay. He has to wait 5 years for his team to draft #2?
Do Carmelo, Howard, and Chris Paul force trades to teams with a good pick coming up? Plus how often would good picks even get traded? Look how often picks get protected now, how many teams would be willing to trade a known good pick, especially when you only have 1 good pick followed by 5 crappy ones? A trade like the C's just had with Brooklyn would never have happened.
I think this would make free agency even more significant than it is now. (Which is bad for a lot of teams that struggle to attract or retain free agents as it is).
I think you could see free agents go to teams about to get a top pick (not that this would be the only factor but when you have a few teams trying to sign a player, those upcoming known picks could tip the scales). Not something that would happen all the time, but I think there'd be quite a few perfect storms where a top team has a top pick and can attract a top free agent all at the same time (or within a couple of years). So teams we hate (like the Lakers) could be good already, be scheduled to get the top pick, and use that to attract a top free agent. I could just picture the 2003 Lakers with Shaq and Kobe, drafting LeBron, before signing Karl Malone and Gary Payton.
Plus if you're scheduled to get a top pick in a weak draft, you're screwed. If you're legitimately bad, maybe you just have terrible luck (drafted can't miss Len Bias or Greg Oden, built around Brandon Roy or Derrick Rose, had a superstar leave town), it could take well over a decade to recover. Think about teams that drafted first in 1998, 2000, 2001, 2006. You're picking 30, 19, 18, 7, 6, 25, 23, 14, 11. If you're not a city that can attract free agents, and you're pick falls on a bad draft or has a career ending injury, you have no hope.
I like it in theory, but I think it would end up being much worse for the league.