Only the top 4 or 5 picks command that salary with the current rookie scale wage. Middle first round picks get around $2 mil a year. Actually, due to the new wage scale, first round picks have never before been this valuable.
It's funny when people cherrypick terrible Bills 1st rounders (Mike Williams, Erik Flowers, John McCargo) then argue that by ditching a #1 pick a team "loses nothing". Hey, I can cherrypick too, how about Jerry Rice, Lawrence Taylor, Bruce Smith, Peyton Manning, Barry Sanders, and Jim Brown? Bunch of busts, huh?
It's been over 15 years since free agency was reworked, and nearly every GM in the league has figured out (it took some longer then others) how valuable draft picks are in order to sustain a winning team. Most analysts and a few GM's had Palmer going for a 3rd round pick - maybe, maybe a 2nd rounder. Raiders panicked and got fleeced.