First, you should eliminate the reserve draft. It begs the question of how much the reserve drafted players should be kept for as well as means you'd have to adjust your overall salary cap downward since you'd only be bidding on 21 players.
Second, using values from this year as someone's keeper price is fine; or you could subtract $3 off of every player to create keeper value. But for years in the future, you should make salaries go up the longer players are kept... our salaries go up $3 the first year, another $5 the second year, and $10 more every year thereafter. You can adjust the #s as you want, but they should definitely increase and increase more the further out you go.
As far as every FAAB being $1, no way. Players keeper price should be their FAAB price.
0-3 to 4-3. Worst choke in the history of baseball. Enough said.