If this system were in place and the playoffs started today...
MY projection:
#1 Atlanta would choose #7 Charlotte
#2 Toronto would take #6 Milwaukee
#3 Chicago would take #4 Washington
Leaving #5 Cleveland and #8 Miami
#1 Golden State would choose #6 Dallas
#2 Memphis would take #5 Clippers
#3 Portland would take #4 Houston
Leaving #7 Spurs and #8 Thunder
You probably should just let teams choose opponents in the bottom half of the seeding. That way if you're in the top half minus one -- i.e. top three -- you have some kind of choice.
More important, perhaps, is that my tweak is the only way to preserve home court for the top half of the finishers.