"3. What happens to Disbanded teams Picks (DO they just Disappear)"

They won't disappear. This couldn't happen since many of their picks have already been traded to other teams.

In order to solve this problem, the commish can either throw in a bunch of fake players into both pools for the contracted teams to pick from (he'll obviously be setting up their draft lists as well, so they'll pick only fake players).

Or, he could select only bottom of the barrel players for those selections (probably easier to do, but one man's garbage is another mans treasure...you never know which players some owners might covet.)

Jon