That's effectively how the Father-Son works XY.
Now, since they changed the rule, about a month or so before the draft (and before trade week), any Father-Son eligible kids are basically put up for auction. Teams can bid say their second round pick for that player. Whatever the highest bid is, the team eligible for the Father-Son selection then needs to counter the bid with their next pick in the draft. Most recent was Ayce Cordy who was eligible for the Bulldogs. Brisbane I think it was bidded their first round pick (pick 7) for him. The Bulldogs then were forced to bid their first round pick (14) to get him. That pick is then locked in and can't be traded or changed.
It used to be if you have an eligible player, you can just elect to take them and they are yours for your final pick in the draft (say you have 5 spots left on your list, it would be your 5th Rounder).
They've basically made the Father-Son rule stricter and replaced it with the NSW-Scholarship program. Teams can go to any NSW club and sign a player to the NSW Scholarship program (even if the player is in their early teens) and when they are old enough to be drafted, the team can elect to take them with their last pick in the draft, or offer them a rookie pick, or just release them from the Scholarship.
The Priority pick system is still in place. If you win less than 5 games for the year, you are given a priority pick. The first year you do, you are given an extra first round pick at the end of Round 1 (eg. pick 17). If you then go out and don't win 5 games again the following year (2 years in a row), you then get the priority pick at the start of round 1 (eg. you get pick 1 and 2)