The problem with the whole philosophy is that it assumes player development to be exogenous, ie in a vacuum, completely unrelated to organizational culture and stability.
A point already made: rookies can bolt in free agency after their rookie deals expire. What exactly is the incentive to stay with a perennially losing organization when your rookie deal is up? You'd make more money on a max contract by staying, but if you're good enough to get the max, that extra money probably isn't enough by itself to keep you around.
Here's another point: No historic NBA superstar has ever turned a dysfunctional, perpetually losing franchise into a champion on his rookie deal (or equivalent before the current CBA). Think about Jordan, the consensus pick for best player in the past 50 years. What did Jordan accomplish before the age of 30, and without another top-50 NBA icon in Scottie Pippen, and a superb coach in Phil Jackson?
Take another example... A lot of people believe Anthony Davis is the next transcendent player, probably the best draft pick since Lebron. And yet, what has Davis been able to accomplish on his own? Take the Pelicans to fringe playoff status? You could make the argument that since he re-upped for a second contract, we'll have to wait and see what he accomplishes in the next 5 years with that team. But let's remind ourselves that the Sixers don't seem to have drafted anyone near the talent level of Davis.
Besides, even if they did have someone like Davis (like, let's imagine that Noel was as good as Davis), once again the previous point: would that player re-sign with the Sixers just because the franchise promises it will get good after years of suckitude?
Building a good basketball team isn't just building a collection of guys with the best athletic DNA and pre-age-20 skills. There's an element of development, culture, and coaching involved. Philly is gambling that it can just flip the switch at some moment in time. Good luck to them.