I think there's one important factor that hasn't been mentioned yet... what level your league is.
I am of the opinion that scouting is more important at the higher levels. Think about it; if you're a level IV team (as I am), are you really going to be able to draft a John Wall, no matter how much money you spend on scouting? Great players simply aren't available to you.
Of the players that are available to a league IV, the difference between the best and the worst is not that great. It certainly isn't worth $490K (the difference between spending $40K a week and $5K a week on scouting for a season). Heck, if you're IV, your entire team may not be worth $490K.
As a USA IV team, I'm considering cutting my scouting to $0 and buying all my prospects off the transfer list. Why not? Sure, I have to win a bidding war, and high potential drives the price way up. But I can pick the players with the exact positions and qualities I want, I'm not limited to Division IV players, I'm not limited to players from my own nation, and I'm not limited to (or forced to take) three players every year. And the draft creates a glut of castoffs, increased supply that lowers the cost of buying a player.
After three seasons, my best prospects have been guys I bought as transfers for small amounts of money -- less than even the $70K it costs to do minimum scouting for a year. The draft has given me almost nothing of value.