Blows.
I mean really,you know something is very useless and ignored if the new players never talk about it.
I suggest you make the arena a side activity for people to do instead of questing to level up.
Use a token system for Arena to cash in for gear, pots and etc.
I believe the last time i did arena the chest only gave one item.
Update it, its like how TA was with durability loss on death(Pointless to do)