#1 seed can pick the #7 or #8 seed as an opponent.
#2 can then pick the #6 or whoever the top seed didn't pick.
Then the #3 seed gets to choose between the #5 and whichever other team is left. And the #4 seed gets the remaining team.
This way, getting into spots 5-6 is desirable since you avoid the 1 seed. Getting to 5 helps you avoid the 2 seed.
Also, I think they should let the top seed left after round 1 pick their opponent from among the two lowest remaining seeds.