Have the bottom 4 draft. Splitting up the to 8 teams is more critical than the bottom 8. The 4 division winners were not necessarily the top 4 teams (then or now). Whereas the same can be said for teh bottom 4, they will all be closer to the bottom and how they get split is less critical than how the top teams do.
For example - Wild Card 1 could have been the 3rd best team. They could in theory end up being placed with the best team since the last pick gets placed with the original picker (which would be champion if top 4 teams start draft). This would occur (in theory) b/c they would be the best team left in the pool after the division winners start the draft. So, if we are really looking to balance the divisions, we don't want Team 3 ending up with team 1, thus re-creating the power division we are trying to avoid by this process.
Now, if the 17th place team is now the 12th best team (quite a jump, but entirely possible), I don't think the same concern exists, as the top 8 would still (in theory) be split in divisions as follows:
1 with 8
2 with 7
3 with 6
4 with 5
Which does create the most balanced divisions. Of course, if we mess up the draft all this goes out the window. But, that's the theory and why I strongly suggest we start with the bottom 4 (who get a pick either way - it's just a matter if it's 1st round or 2nd round).
Sorry. Don't want to create a big debate, but just wanted to get that logic out there. The only logic of going division winners first is - to the winners go the spoils. But, I think even that is kind of silly.