Oracle lets you choose 2 you see or 2 blind. This is sort of middle of the road, see 2 and pick 1. Not a perfect comparison, but the power seems similar to me. Oracle draw is a bit more powerful, but it's terminal.
The important thing is the order of the filtering. Ironmonger draws before filtering, this filters before drawing (well, at the same time). The latter is more powerful.
This is not a draw card, it's exclusively a filtering card. Draw means increasing your handsize, which Oracle does by 1, and which this does by 0; relative to not having a particular card, the cost of playing something from your hand is +1 Card, +1 Action, which you have to subtract from what the card actually says in order to get the benefit that the card gives you. The draw power of this card is 0% of the draw power of Oracle. Village/Smithy is a draw engine; Market/Peddler is not.
All else equal, discarding a junk card is generally worse than putting it in your hand, so it is not strictly better than Vagrant, but it's very close. It would probably have to be $3.
