Why would someone drop a player that could help another team? Makes no sense.
The way the league is set up, you can keep players 2 rounds ahead of where they were drafted. So say I drafted Ryan Zimmerman in the 4th round, he would cost me a 2nd round pick next year. Johan in the 5th this year would cost me a 3rd round pick next year if I kept him.
The problem that came up was the possibility of the last place team dropping valuable players that they don't plan on keeping for prospects etc. So say they drafted Reyes in the 3rd round, and they didn't plan on keeping him, they dropped him for some dude that will cost him a last round draft pick. Then whoever is in the running could go ahead and pick up Reyes.
Does that make sense?
I'm in a very similar leauge but we only get three moves per year so it's not much of an issue.
To deal with part of the problem, any player who is drafted is available the following year at their draft position -2 rounds regardless of what team they end up on and regardless of how they were acquired. For example, I draft Joe Nathan in the 8th then drop him because he is mortally wounded. Someone else picks him up because they want to keep him - he costs a 6th rd choice, not a last rounder.
3 moves a year?? Haha I don't think I could deal with that! I like making small moves with my roster...19 moves already in one league!!
We have that exact same set up....except our draft was AFTER the Nathan news.......
I guess it helps to some degree.