Everyone should be on the same level. Maybe give the winner a bit of a bump, or the winner can pick no lower than 5th or something. I don't think lower teams should have higher odds than the better team, but they certainly shouldn't have the lowest odds.
Just my personal opinion, I'll ultimatley be fine with whatever.
I might do something like that, we'll see.
For example, in the draft lottery simulator to set the draft last summer I gave everyone 3 lottery balls in the randomizer. So what I had in mind for this season was:
1st place - 5 lottery balls
2nd & 3rd place - 4 lottery balls
4th place - 3 lottery balls
5th - 10th - 2 lottery balls
but maybe having the winner draft no lower than 5th might be a better call (and giving the winner 1 extra lottery ball (4) and everyone else from runner up to 10th place keeps 3 lottery balls).