OK, I've been dragged into the consensus. I like the plan, too, as it penalises, after a fashion, keeping players for more than a year, which is part of the appeal of contracts. I voted for 7+ keepers (I'm entrenched), majority rule on questions, injured players are like normal waiver pickups (this goes for regularly cut players, also), and last remaining pick should go for waiver keepers.
Omar, I think, raises a good point about timing of keepers. Say I like my LF, who is the second best in the game, and I assume #1 is being kept by my nemesis in the league. Then, he announces that he's not keeping the LF. Why should I hang on to mine, then, if I have, say, first pick in the draft?
I'm kicking around two suggestions: we all submit our keepers blindly. Slips in a hat. And they're revealed "at once." Or, we don't announce them until someone else drafts that person, and we say, "excuse me; he's *kept*." That would be good drama, but it'll be obvious once we deal with giving up 1st round picks, etc., so the slips in a hat is best.