Well this is bad news (not unexpected) for bad teams. The good teams will keep their free agents no sweat and even be able to add another max deal onto the books. The bad teams looking to get better will have cap space but nobody to spend it on besides crappy players. It's going to take awhile for the "new normal" to settle.
As for the draft picks, yes the rookie contracts are set in stone. However, those cheap rookie deals lose some of their value in a league where teams don't have cap pressure. Also, we don't know what will happen to those rules after the likely lockout in 2017.
Dear lord how much is Sully going to demand next year? All the Cheetos in the world will be his.