Remember the arena in Oblivion?
Yes, Yes it's overrun by Daedra but the one in Kvatch is available!
Remember how in Oblivion you were a gladiator - how they would pit you against other contestants, animals and handicap matches (2v1, 3v1) etc. to fight your way to the top as Arena Champion?
I think that could work with a PVP twist.
Say you get leaderboard scores based on your performance.
Say there's 10 matches to call yourself Arena Champion:
"The Colosseum, people are cheering! Other players who aren't participating can watch the matches and put their gold on the line! Players WILL know the champions, and see the matches!
You're standing ready, waiting for the gates to open.. You can see your opponent from across the yard. The presenter ends his speech, the gates open and the pvp Gladiator fight begins!"
Gladiator schools would form and try to compete with each other as they were also watching and cheering their fighter!
And example of an Oblivion style arena could be...
Match 1-5 would be 1v1
Match 6-7 would be fighting some PVE type Minotaur bosses or a den of wolves
Match 8-9 could be a handicap match 2v1 - two with low leaderboard scores try to increase their ranking by taking on a strong PVP player who've won his latest 7 matches in row.
Match 10 - Match of the undefeated. The guys who've won all their previous 9 matches face off in the final to call themselves Arena Champion!
I know this concept is not a finished product, still brainstorming.. But I really think a Gladiator Arena would fit perfectly in a PVP setting, and it fits with the lore.
Put it in a city so PVE players can watch the matches and bet gold on the matches. Let the forum talk be about the lastest champion, and how he wiped 10 players in a row simply looking at them! Everyone is happy!