Well yes, that rule is a bit brutal. But again it's something new and puts you in a position where you need to decide whether to participate in the reinforcement pool round or not, coz it will cost you a player, literally.
If
@The Man Himself wants to relax it a bit he can probably allow people to retain the excluded player if they don't manage anything in the reinforcements round, instead of getting a sheep. Basically replacing a legit player with a sheep would be a hard one to swallow for anyone. But he's the draftmaster, up to him how tough he wants this to be.
Is this inspired from the IPL, by the way?