I think it depends a bit on the olympics in 2006. If Hockey Canada is not going to be able to send NHLers than I think they want to use tournaments such as this, to evaluate top end talent outside of the NHL.
This point aside I don't see why the wouldn't be eligible.
Since the lockout is only this year (considering that NHL will be back next season) and the players who are in Europe are available for the tournament I think that IIHF is going to pay for the insurance and give us a great tournament. The IIHF couldn't afford it every year but for one year they could, and this year is a good chance so I think that might happen. Hopefully....
BTW, I have a ticket for a A1-D1 game (hopefully Russia-Czech Republic) so they better bring all the best players!