I like the thought. The idea needs work. Lets say in Year 1 the bottom 3 is Teams A, B, and C. Team B wins the 1st pick. In Year 2 the bottom 3 is A, C, and D. Team D wins the first pick. In Year 3 it's A, C, and D again. Team D wins the 1st pick again. In Year 4 it's A, C, and D again. Team D is eligible to win the pick for the 3rd year in a row but Teams A and C are not because they lost in the 3 years prior?
Perhaps a lottery where if you win it you can't win it again for the next 5 years. Removing teams based on chances they had previously while allowing other teams who've won before in just seems wrong to me.
Unlike the NFL, NBA, and NHL it takes more than 3 years to develop most prospects, even the top picks. In year 4 teams A and C will be lucky if their pick in year 1 is in the league by then. Especially since the draft happens the following season. It's essentially less than 2 years of development(Draft in June of Year 2 to Year 4 start in April). Teams should strive to get better sure, but losing a lottery 3 times is hardly something that should be punished. The right way to build is to develop initially and then made additions as you're on your way up, which those prospects won't be there in 2 years. How many people here made fun of the Rangers for paying way too much money to try to get better when we all know that's the wrong strategy for them in their current timeline. By the time they're good those contracts will be only a burden.