The faulty part is predicting some players to be better only because they were worse in 2005.
That's not what I'm doing.
As a starting point, do you agree that year N's end of year stats should not mirror your year N+1 projections?
This seems obvious. What I try to do is take year N's ppg stats, adjust to account for (a) changes in talent/experience, supporting cast/coaching, and opportunity for N+1, (b) anything unusual that happened in N that isn't likely to occur again. Then I try to compare against historical trends to see if I'm working with the right order of magnitude; if my projections seems off from past history, I go back and figure out what I missed or what I over- or under-estimated, or whether N+1 may really be a lot different from recent history.