I agree totally, when i want balanced competitive FPS fun ill start up Quake 3 or CS 1.6. This is one of those games that even if they have such a thing as an arena mode, it should be basically something rare.
Every body is worth more to the great crusade, than sitting in an arena.

It wouldn't hurt to have this implemented as a side show but at a way later date(i.e. an xpac)

No problem with a E-sport mode, only if it is a limited time competition thing, and not a arena style thing you can go to anytime...The focus of the game is mass combat in open world, and having a arena around all the time, will hurt that. Make it a competition like a tournament for a week or so, maybe between campaigns, and everybody is happy...oh and no to in game rewards from it...only cosmetic/achievement/fame from press coverage, those are enough.

That's after the main part of the game is ready, I'd hate having the devs with too many "to-do" things on the list at this stage of production, even if those are things I approve...that's usually (always) bad news...

They should have seasonal gladitorial arena combat events to crown the best strikeforce of the Eternal Crusade.

I think it'd foster a competitive spirit and put some weight behind a lot of rivalries if you had such a tournament a few times a year

I.E. Space wolves and dark angels. I think its a great idea.

Yh would be a great thing now and again (inbetween crusades /seasonal) to sort them rivalries out and to create some stories and news but shouldn't be an always available thing as people have mentioned it would take people away from the focus of the game. Would it purely be faction locked though so no sm v sm or because it's tournament anything goes and it's just every squad for themselves till a winner prevails? Winners gets a nice ornamental piece to show what a boss they are for the next crusade no XP or stat enhancing stuff why would they need it

Like the way OP would set it up with a point system for loudouts per team would make an interesting tactical play and limitations. Especially if both teams could see each others choices and they picked one after the other untill the full team had been picked.

It would be similar to WoW's arena where it was a squad vs a squad(doesn't matter what faction). Could be Space Wolf vs Space Wolf. But, I would say take it to a GoW type of arena(Small engagement area, 2v2,5v5,10v10) Basic loadouts to prevent cheap builds. You wouldn't see your enemies loadouts prior to fight. So, it's more of adapting and overcoming vs rock/paper/scissors counter classing.

Base it off of a rating system. Winning adds to your rating. Losing games takes rating away from you. Have the competitive score to match teams up of similar rating(I.E. if you are a 1000 rated team you are matched to a close match and not a 3000 rated team, who has more skill/experience than your team). That way it keeps it competitive at different levels and its still fun and not just getting rolled by another team and miserable.

I started reading and saw the WoW arena, but then you stripped down all the bad things WoW's arena has, so I calmed down...I'm all for standard equipment...

A rating system would be cool for a permanent arena style of gameplay.That would be awful and out of concept for this game.
If, as most of us promote here, is a limited time competition thing now and then, something more in the lines of a tournament system (groups with points for win, playoffs after that until final, an example), would maybe be more preferable.

Yh I think whichever way they do it aslong as it's limited to be fair either set equipment or base classes, which may pose problems cross faction if they aren't perfectly balanced which I'd imagine they won't be for example elder squad vs ork squad their hp and tech would be so different so a point system to creating loudouts would be an easy way to tweak balancing and allow variation to tactics. This does have to be a tournament now and again not a permanent arena when/if this is implemented. Could imagine taking time off work to take part think it would create some hype up to and after the tournament around the game refreshing some interest to those that have wavered.

Like I said prior this is definitely something that should be implemented with an Xpac. So, the game itself is balanced and fun before worrying about this. This is more of a sideshow tool.