I've come around to the view that if you abolished the draft and made all prospects free agents, but paired it with giving teams limited pools of money to spend on signing prospects (with the worst teams getting more, the best teams getting the least) it might make things easier for rebuilding teams and drive parity.
The good teams can't sign everyone: they have rosters full of stars. In this scenario, you might see bad teams signing multiple top prospects thanks to their mix of more pool money and more roster spots to give away to promising kids. Sure, some prospects will demand to go to the Lakers or nothing, but you might see scenarios where 2-3 top prospects from rival schools decide to play together in New Orleans and form a superteam like their childhood hero LeBron.