I am not happy about trading Kennedy if he wants to stay.
As for pick 1 versus pick 3 the consensus is that Kreuzer is a freak in that he is very tall and can play as ruck/fwd with aerobic capacity and skills of an elite midfielder.
As good as say the top 5 picks are, the others will be midfielders and are not quite as scarce as guys like Kreuzer. I think that is why number 1 is such a sticking point.
Anyway if you get Kennedy I hope he is a star for you, he seems like a good bloke but try to let him fit in anyways ;-)