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It seems to me that the result will be that --- > teams acquire talent correlating to their draft position.
MLB is about to start doing what the NFL does -- ensure (at least to an increased extent) that teams take the best talent available at each draft pick.  What's wrong with that?
Signability slides down the ladder are going to have much less impact.  Matt Tuiasosopo won't slide to the 3rd round and then get 1st-round money; he'll simply be taken where he should be taken, #15 overall, or he'll go (essentially) undrafted and go play football.  No bluffing or guessing involved.  That's a good thing from where I sit.
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The idea that small-market teams "over-slot" more than big-market teams is dubious. 
Naturally, losing teams spend more for drafted players because Dustin Ackley costs more than the #22 overall pick.  But I haven't seen anything that demonstrates that the Royals "over-slot" more than the Yankees do.
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The international cap is a different thing.  It's not clear to me that (in addition to controlling costs) the Yankees aren't simply trying to hamstring the Mariners' advantage here.