If this were baseball where the All Star game actually meant something, I would be a little more concerned with who gets to represent the East. It's not baseball and it doesn't mean anything, so I don't care if the first defensive pairing is Matt Irwin and Kevan Miller.
The ASG still doesn't mean anything in baseball. Every team being equal, it only flips the World Series advantage half of the time. And, assuming that the only advantage is the actual location of the game, and not necessarily the order of the games or "knowing that you have a game seven at home", the advantage only matters when the WS goes to game 7. Again, assuming evenly matched teams, the WS only goes to 7 games 31.25% of the time, which is pretty close to the empirical 35 out of 91 times (38%) since 1922.
Thus, the ASG in baseball only has an effect about 15.6% of the time - or about once every six years.
In practicality, since 2003, when the rule took place, there have only been two game 7s. In 2011, it did flip - the AL Texas Rangers had a better record, but the NL St. Louis Cardinals hosted and won game 7. In that case, it did make a difference, at least in theory.
Last year, the AL Kansas City Royals had the advantage over the NL San Francisco Giants thanks to the ASG - but the Royals would have had it anyway due to their regular season record.
That said, ASGs in baseball and hockey are fine for the kiddies, but I don't like them counting for anything - the less they matter, the better. I'm also for mitigating the impact of less standardized games like the WC/Heritage Classic/Stadium Series by having them be the "odd man out" game in a series that would be dropped in a head-to-head comparison.
And as for cap hell, that doesn't matter. The "naming to an imaginary all-star team" happens in all four major pro sports leagues as an award/honor, if I recall correctly. In the NHL, it's voted on by sportswriters - it's basically a "3 star across the league for the whole season", but with 12 stars - 6 players on each "team" for each position. As stated before, this is separate from the actual all star game, and ordinary joes can't vote for it.
Now, could sportswriters in theory collude and stuff the ballot box - or at the very least avoid voting for players who play for their team? Yeah, probably. And players can be given bonuses for being selected to the actual ASG, too - a mirrored version of CapGeek that I found from last year says that they're both Schedule A bonuses.
Now, I found that an individual player's Schedule A bonus can't exceed $212,500 per player, yet Iginla cost us over $4 million - I can't figure that one out. Perhaps it changed.
The obvious solution for clubs is NOT to tie bonuses to either the ASG or to the "all star team" - and, generally, they don't. In a case like Iginla, the bonus is set at a reasonably low number (Iggy got $3.7 mil of his bonus for playing 10 games), and is tied to simple stuff like games played or goals scored. It's an accounting practice that allowed the Bruins to pay 2013-4 salary with 2014-5 cap money - which is part of the reason we stunk last year.