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Not a problem
There is nothing inherent in the system now that causes competitive imbalance. On the contrary, already there are mechanisms tin place to prevent imbalance - poor teams getting higher rookie picks is the key one, and limits on PB value another (although it seems to rarely come into play).
There really is no reason that a team can't turn itself around over a season or two. Let's be honest - many teams do poorly year after year becuase the owner doesn't put in the effort or makes bad decisions. Sometimes its bad luck and a tough division, but generally just like real baseball they don't evaluate their own or the available talent all that well.
In Trad leagues, the first 8 draft picks in the rookie draft each year are usually impact players - getting an Ichiro or a Pujols in the last draft is a big plus. There is plenty of time for a poor team to trade players (that have good numbers the current season but bad the next) to contending teams for help next year, either picks or players - but you have to take the time to look things over, think about who you can keep next year, and find a team that can use your player and make a fair offer.
In Real Time, the monthly drafts can help really bad teams get talent quickly. Every month there are a few really good rookies made available, that would be first round, possibly lottery, picks in Trad leagues. Only the worst teams have a chance for them. But once again you have to look the list over and know your prospects.
I do think a contraction draft should be weighted like a rookie draft, poor teams first, but not as a quick fix to erase a few years of bad decisions by dropping a few All-Stars in some teams lap.
There are other ways to make improvement easier. The free agent draft could be in record order as well, instead of random. The cap for total PB points a team can carry over could be lowered. Teams could be required to cut to 25 (an active roster) instead of 27 players and two more FA rounds added - this would free up more of the platoon players and long term help that the best teams hold onto.
Fred