Someone linked me to some really neat bar graphs showing how each pick did over the last 30 years. I forget the link now but i remember it showing that historically, if you select first overall, odds are you'll get a really good player. I'm talking multiple time all-star, and most of the MVP's of this league were drafted first overall. Historically, drafting in the top 5 gets you a really high quality player as well. Then there's a drop off from 6-10, and so on and so forth.
I also don't buy this whole "scared to draft". If these GMs were scared to the point of inaction, they should just quit.