So, I just got Arena to work, but the menus are really really slow, and I'd like to change the control scheme, and maybe get that pointer free look that Daggerfall has, how do I go about doing that, or is it impossible?
You can change the detail settings (its a slider left from right in the esc screen), or the cycles CTRL+F12. Otherwise, no you can't change anything else. Its not true 3D so you cannot have mouselook like in Daggerfall, and the controls are uncustomizable.
Out of curiosity here, what exactly is affected by the 'Detail Settings' slider? (And at max detail and about 17500 cpu, should any modern computer struggle with Arena???)
You can change the message pixelation by pressing the F4 key once. (It's a toggle, so pressing it an even number of times ultimately results in no change.)