Yes, however I would like to make one alteration
NOT TO THE DEATH, IT MAKES NO SENSE
I know fights to the death are more hardcoe/epic but as a spectator sport an arena that isn't to the death will have much better fighting. I'll list a few of the many, many reasons here:
- People can improve, in the IC arena it's just win or die. That means half the people fighting are guaranteed to be novices and not any good
- Rivalries can develop between 2 good fighters
- Combatants can develop a following and fans can root for their favorites
- The arena will attract good fighters from all personality types, rather than just desparate/crazy/bloodthirsty
- It would give the teams an incentive to actually train the new recruits rather than having to pay for their training and then having the majority die in the first 2-3 fights
Besides, check http://www.gamesas.com/index.php?/topic/1153456-imperial-city-arena-entertainment-or-genocide/ a couple days ago about how many deaths it requires to have an arena like the one in the IC. For those who don't want to read it, each combatant of the hero rank (and there are at least 6 of them) required at bare minimum 2187 deaths for that one person to reach that rank.
Along with the fights, I'd like to see archery contests (only if PC Skill affects marksmanship rather than only player skill) and the melee (a bunch of people fighting each other in a free for all).
EDIT: I'd like to mention that it should be possible for a fight to end in death, but it should be the exception.