The part about hurt feelings can certainly be true. The solution would be a closed draft, where the players only get to see the final outcome (that's why I proposed IRC).
That's possibly a good way to handle it. Although KP's point about the difficulty of getting everyone together is valid.
I more saw the choice as:
1 draft pick
Which is about the same situation as as two draft picks. However the advantage of a "franchise" player as opposed to a second draft pick is that the specification of a franchise player is really equal for all teams whereas a draft choice for the 1st place team is far less valuable than for the 5th place team that gets to choose first in both rounds.
I believe that trading the second draft choice for a franchise player is more balanced and is actually a fairer way to proceed.
I think we should have a draft with each team getting two picks, and the rest assigned randomly.
Given that this is how the last draft occured this has to be considered the "status quo" and anything different would have to be considered a new rule that would require approval by the league.
Certainly there will be those that have this opinion, the question is whether it's in the majority or not.
Another possible idea is that if folks really want to stay with two draft picks with no "franchise" player then I would suggest that the draft order be reversed for the 2nd round to make the draft more equal for all teams. So 1 team gets the 1st and 10th choice, the next gets 2nd and 9th, the next 3rd and 8th, the next 4th and 7th and the final team gets 5th and 6th picks.
The idea that the worst team gets the highest draft choice is valid in real sports simply because a draft does not involve 100% turnover of the team. In our current case the only one that doesn't turnover is the captain so having a good record essentially punishes the captain and only the captain.
Given 100% turnover the previous seasons record is actually meaningless because you aren't helping out the worst team from last season since this new season the team is a totally different one.