I think that's a pretty interesting idea. Only problem it would no doubt create is the player vs player environment, which isn't exactly practical. It's rare that people will willingly kill off their character. The only way I could see it working is if it were a grouped version, such as random people put in a group together and forced to fight/survive against NPC groups.
A solution to the hunger games killing problem would be that the GM throws a dice or uses a random number generator that decides which character dies when two players meet. The GM then sends a pm to both people involve letting them know who is going to die and then they decide over pm how the death will occur.
Or, players could have stats in the beginning of the game, all of which are balanced. For example, a rogue character can sneak upon someone, while a warrior would win a rogue in open combat. Different situations would mean differen attributes would be favoured. Perhaps the "Hunger game" could have random scenarios placed upon the way and have a few clashed between players as well.
However, over-all.. I don't think a hunger game type, pure PvP game is very good. I'd much rather have an Werewolf Forum game over a survival RP with stats or a survival RP without stats. The werewolf forum game is actually very fun survival, with a set of rules that have been balanced over the course of many tries.