I personally have been pretty happy with the first and second round talent level of recent drafts, despite usually picking at the end of the round. My concern with upping that talent anymore is that it won't be as much of a bonus to the teams picking at the start of the round versus those picking at the end. That is, winning teams will continue to be getting just as infused with young talent as losing teams.
My only real critique with the draft at this point is that the latter rounds are beyond pointless. After a few seasons of stabilizing a roster, no one from rounds 5+ ever make my roster, let alone UDFA. In the NFL, on average about two UDFA make a 53-man roster every season. On MFN? Never. Or close enough, anyways.
The only real solution I have to this is a suggestion I made a very long time ago in MFN-2, which had to do with implementing scouting (this actually inspired me to re-post it to the suggestion forum:
http://mfn8.myfootballnow.com/community/5/836?page=0&x=sxw1f&y=cwl#4719.) This feature would allow for more late round prospects potentially slipping through the cracks.