Parity is King so obviously they want to keep the teams as close together as possible (in terms of the spread of talent and skills from team to team)... which is what the hard cap does and what giving the best prospects to the worst teams does.
I don't really think anything is 'broken". Only in years with a Gretzky/Lemieux/Crosby/McDavid generational type prospect is there really going to be overt tanking.
Tanking is still a risk obviously because you can get a dud that really doesn't help a franchise achieve much success due to their selection... like a Stefan or Johnson or Yak(sadly).
Obviously a Gretzky type prospect is worth throwing in the towel for... because it likely means ticket/merchandise revenue goes up which is beneficial beyond performance on the ice... so a system with some increased randomness like currently is in place is warranted.
I think what we have now in place is decent. There rarely are going to be 3 generational (or close to generational) players so having a lottery for bottom 3 at most makes sense.
As far as the percentages go... they've pretty much neutered the odds for the DFL team as I think it's pretty much 50-50 now whether they even get a top 3 pick... and at worst they get a top 4 pick... which feels "about right".
You could have lotteries for say the top 5 which would make it even more random and less rewarding for "tankers"... but I think having for example the teams with the 14th , 12th, 10th, 11th and 8th teams get the first 5 picks... while the worst team got the 6th pick... feels a bit wrong.
The best prospects should go to the worst teams to help them regain some ground and achieve parity and give fans something to hope for (like this hopeless Oilers fanbase
)... instead of decent/average teams getting the best picks and creating a wider gap between the haves and have-nots in the league.
I also wonder if the Panthers or Hurricanes or Blue Jackets would have been the team to have 4 #1 picks in the past 6 years... would there really have been as much of a kerfuffle over wanting to change the draft format? Not as likely imo.