That is actually a valid point. Teams can intentionally lose games in order to secure a better draft pick in the future and just tank.
However, I think it's important to note that the success of a draft system ultimately depends on how it's implemented and enforced. Like ann example, leagues like the NFL and NBA have implemented rules and penalties to discourage tanking and ensure a competitive balance, such as draft lottery systems that reduce the likelihood of the worst teams always getting the top pick. The algo can be custom tailored for esports.
Also, with the relegation system in European football, while this system may work well for football, it's not necessarily applicable to all sports or esports. The structure of a relegation system may not be practical or feasible for a tournament-style event like the Valorant champions tournament. An example that I can think of is that VCT is a short-term event with a limited number of matches. It would be difficult to implement a relegation system within the confines of the tournament format. Additionally, the goal of the Valorant champions tournament is to determine the best team in the tournament, not to determine which teams should be promoted or relegated to a different league considering the global structure of the events as well.
I think still that the success of any competitive system depends on how it's designed, implemented, and enforced. While there may be potential downsides to a draft system, it's possible to mitigate those risks and ensure that the competition remains fair and exciting for all participants and viewers. The 'Yay' C9 issue is also one of the eye openers that I think this draft system can combat.