I've always wondered (but expect most people would hate it) whether it could work if you set the following "gifted picks".
30th - 3rd OA
29th - 4th OA
Lottery: Rest non-playoff teams. However, perhaps the top 3 non-playoff teams should be excluded from the lottery for the remaining top 5?
Teams can tank for better picks in a rebuild, but they'll fight to keep from being the absolute worst two teams for a chance at the 1OA. This should help to promote more retool based rebuilds vs complete scorched earth and cratering of team rosters that we have witnessed in recent past. Teams that just "suck" still would get good players for a rebuild, but blatant cratering that risks damaging the NHL's image wouldn't be an issue (not that it really even is an issue now, IMO).
Now I know this idea might be hated because bubble teams sorta get screwed and also allows a lottery format for a very good team that randomly has an off year to statistically nab a top pick.
But this idea isn't good enough to replace the current system IMO.