I think it's cheesy to be able to pick up and add players once the games start on Sunday. Just because you're the guy with DirectTV and 5 TVs on at once watching every game doesn't mean you should be able to add a guy immediately. I liked it best on cbssportsline.com when FA/Waiver requests weren't processed until Wednesday 12am.
I think their FA/waiver process was based on total points scored in the previous week, so losing teams for just THAT week had priority on FA. If it didn't work that way, that's the way I would do it since winning teams are penalized for being good.
However, I think your statement about waiver priority being based on team record breeds complacency isn't really true. Even if it does, what's it matter they will consistently be in last place anyway, who cares if they get first pick at FAs.