Procedure
Forgive the nerd-dom, but here goes...
Teams were divided into two "pots" before the draw. Pot 1 contained South Africa (being the host) and the three highest ranked teams according to the FIFA rankings (Brazil, Italy, and Spain). The remaining teams were in Pot 2.
Then they drew the teams into groups so that:
1. only two teams from each pot went to each group (presumably to even out the groups... 2 of the "best" and 2 of the "rest" in each group)
2. the two African teams weren't in the same group, and
3. the two European teams weren't in the same group.
The problem with #1 above is that you force South Africa into Pot 1 since they're the host. That ensures that the groups will be uneven, but it gives the host nation a better chance of advancing out of the group stage (which means more money for FIFA). We were just unfortunate not to be drawn with the hosts. Although our draw gives us a better chance to see where we stand, which is better in the long run.
While I'm at it, this brings me to the
2006 World Cup draw. We were essentially guaranteed to be drawn into a difficult group:
The eight seeded teams for the 2006 tournament were announced on 6 December 2005. The seeds comprised Pot A in the draw. Pot B contained the unseeded qualifiers from South America, Africa and Oceania; Pot C contained eight of the nine remaining European teams, excluding Serbia and Montenegro. Pot D contained unseeded teams from the CONCACAF region and Asia. A special pot contained Serbia and Montenegro: this was done to ensure that no group contained three European teams.
We'd liked to have been drawn into a group with an Asian team. But since we were forced into the same pot as the Asian teams, that possibility was eliminated. So, we were assured of drawing a top 8 team, a (or perhaps another) European team, and either a South American or African team. Who'd we draw? Italy, Czech Republic, and Ghana... a nightmare of a group.
If FIFA does something similar for 2010, we can fully expect another "group of death"-like group next summer.
Seeding teams 9-16 would go a long way toward evening out the groups.