I enjoyed reading the comments/dialogue. I think I understood most of it.
I would wait until after year 2 (keep in mind after year 2 some players become FA's like Durant, LeBron, Paul, etc). I like the lists Fenris is presenting to give us some ideas, but have to give it much more thought as to have an opinion.
I think we take expansion one step at a time. I think a good first goal is to reach 20 teams for year 3 (4 teams being added that offseason).
Expansion draft first
Then rookie draft
Then FA draft
(I think that order makes sense for that particular offseason