the 1-8 format was also flawed... I remember one year that a division champ would have been 7th (3rd as per rule) and that he was still host for the series... until they decide to seed by points 1-8, there will be issues with their system
That never bothered me. I think there should be some kind of reward for winning the division. Doesn't bother me in the NFL, either although people complain.
I think the NBA set it up so the division winners get the top-4, but if a second place team has a better record than a division winner, that team gets the higher seed. Toronto didn't win their division, but they are the 3 seed while Washington did and are the 4th. Doesn't really matter in the NBA as nobody in the East is beating the Cavs and nobody in the West has a shot against the Warriors.
There were some issues with that in the past, however I think with the better parity we've seen in recent years that it would be less of an issue. What I always wanted to see in the past was that the division winner received a guaranteed PO berth, just slotted where their points dictated things. So if a team in a really weak division gets into the playoffs based solely on winning the division, then instead of getting home ice, they get slotted 8th (or wherever). However I think this is less of an issue with the league having 4 divisions instead of 6, with each of the winners the last few years having 100+ points. They might not be the strongest team in the conference, but they're at least good enough that it's not an embarrassment by them getting home ice until the conference finals.
My issue isn't that the top 3 teams in each division are getting a PO berth, its just that the home ice carries over regardless of who they play - and that's just wrong. In the 1st round the WCs are playing the division winners - so sure give them home ice - that's your reward for winning your division. But that's where it should stop. You get home ice against what in theory should be a weaker team. That gives you every advantage possible to advance to the second round (and the playoff revenue that comes with it). But everything after that should be based on points.
I mean in this example by what virtue does Ottawa deserve home ice? They didn't win their division or have more points then their opponents. Basically the sole reason they're getting home ice is because they do not play in the Metro. That doesn't seem like a valid reason to give them home ice.