Rich, I don't believe that this franchise has anything resembling "a concept of playing to lose." I think they are doing what they can, and given their age, injury situation, and the players they are asking more of right now, "what they can" is not good enough to win on a lot of nights. But they are still winning about half the time, and it may be good - or bad - enough to keep them ahead of the teams close behind them, who are playing crappy at this point.
My understanding of the draft lottery is that all non-playoff teams are in the lottery, and every team in the lottery has a chance to move up in the draft order (except for the worst team, who cannot improve their "natural" draft standing, but can only move down). However, I think there is a constraint built into the lottery now that a team cannot move up more than 10 places in the order -- so the team with the 14th worst record, for example, cannot move up higher than the 4th pick. IF I am right, that is why finishing with the 10th or 11th worst record is at least moderately important. Beyond the natural benefit of having earlier draft choices whatever the results of the lottery, finishing no worse than 11 means there is a chance - very small for sure, but it IS there - of winning the lottery AND moving up to the number one slot. Because the consensus #1 pick this summer, Bedard, is supposed to be the most dynamic forward since McDavid.