If you're not drafting at the top of the first round, you're not getting elite talent and your team will be relatively worse. Draft and develop is a concept to avoid taking players with major flaws to fill out your roster but it cannot make your team dominant.
Beginning with the 1976 draft 46 first round draft choices have made the HOF. That compares with 26 other players from all other rounds (AND free agents) combined. What's more, 38 of those first rounders were chosen in the top half of the round-14 or higher. 32 were selected in the top 10. Only 4 were found in the last 1/4 of the round, 21 or higher.
The most recent draft class inducted is 1997 so using that time frame: The chance your first round pick was elite was about 8%- 1 in 12; a top ten pick hit big about 15% of the time- 1 in 7
Compare that to rounds 2-8 (Richard Dent was the last 8th+ rounder) . Those picks made the HOF at a little over 2/3%- roughly one in 150. Free agents are so much worse it's impossible to estimate. Only Warren Moon and John Randle of ALL undrafted free agents between 1976 and 1997 made the NFL HOF. And Moon came from a celebrated career in the CFL.