i have to say.... i do like the concept of this idea
i havnt read through all the comments but an addition to the idea so that all players can hit anybody regardless of level is to have individual invites to a battle where one proposes a battle type i.e buffs included, gear stats only, level range etc etc and the other accepts or rejects the terms, once the terms are agrred upon/accepted you gear up, buff up etc depending on the terms and lock in stats, much like the arena. so you can change gears for other battles etc etc...... and then just let the battle begin and each time you guys hit, regardless of what your wearing, only your locked in stats will be used