The draft order was determined by current place in the league, worst to first. The order was then reversed for the 2nd round of picks (there were only two rounds), which was the system for our original draft.
I had the third pick (picks 1&2 got Schilling and Floyd, respectively) and am obviously rather pleased with how things turned out. As far as Chicago's comments go, I can appreciate where you are coming from. However, this draft was optional (so if you like your team you can keep it) and because it favored teams who are struggling, I think it will end up making the league more competitive over all.
The way I see it, if for some reason a team went insolvent during a season, their star players would find jobs somewhere (most likely the Yankees would buy them all for their playoff run...)