My league just added the rule that the consolation bracket now plays for draft position, and this has worked out so far. I really like this approach, because you best improve your draft position by winning.
I love that, have thought about it a bunch of times, and swear if I ever start and commish a dynasty league I'd have it in the rules. Best solution of all IMO. Say, 14-team league, top eight make playoffs, remaining six play the consolation tourney for picks #1-6. Everyone will be trying to win all year. Structure money payouts so that no team would tank to
just miss the playoffs in hopes of getting the #1 pick (especially since they could lose in the consolation tourney and end up with pick #5 or 6 and win no money).
I have never seen it in a league though, so kudos to you guys.
To those who would argue that the bottom team should just get the #1 pick (and that's most folks), I would say that there usually isn't a lot of difference between the bottom six teams usually (unless an owner is really clueless, and then he should probably move on). It's often a matter of injuries or bad luck that puts a team in the position to really suck by about week 8 and start thinking about maximizing future value rather than winning this year.