I think @xultanis-dragon and @Galactic-Geek are right on the money with this.
The Mentality that ''TDM doesn't affect other crews, just take your free win and leave'' is entirely wrong. Yes you can play arena how you want, but to an extent there is a 'right' way to play it, this being using the core aspects of the mode that are specifically provided to you. TDMing basically removes most aspects of arena, the ships, the sea, the chest, hell even the silver doesn't matter. I think that Xul and Galactic Geek are right by saying ''If 3/4ths of race cars drive in the wrong direction, does it affect the others?''. The style of arena match that is intended is crews fighting over the chest and sinking each other in order to remove points from the enemy team. Due to poorly designed mechanics, crews bypass a lot of this, either by cannon farming ships and intentionally keeping other ships from sinking in order to get as many cannon points as they can, or by scrapping the concept of ships and chests to go fight on an island. If you're trying to experience that core Arena experience, and most of the Lobby is ignoring the objective to TDM, then you aren't getting that player vs player you're looking for. The same people who whine that Alliance Server/PvE Servers are bad because ''if there's no risk of losing your loot, getting loot won't ever feel the same'' are also the same people that say ''If you don't want to TDM then just ignore us, go dig the chest, and get a free win''. They somehow don't see how they are telling people to do exactly what they dislike about Alliance Servers or PvE servers. If you want that intended arena experience, getting free wins by being uncontested with the chest while the rest of the match is busy fighting on an island, then the same problem applies, theres no thrill of the hunt, there's no threat of players sinking you, but I guess they make an exception for arena, because they don't want arena to be changed. That 3% is never going to get higher when most lobbies consist of;
TDMers not participating in the overall match
Spawncamping for Cannon Points
Spawncamping for kill commendations
Majority of crews leaving immediately
If a crew is spawn camping another crew, be it for cannon points or player kills, it means that 2 out of 5 ships are stationary, they aren't moving around, they aren't a threat to anyone who doesn't go near them. To the rest of the match, they may as well not be there, and the same thing applies to TDM crews.
I think theres a lot wrong with Arena that prevents that 3% from getting any higher, and one of the biggest problems I see overlooked is that the existing arena community does not want change, as the change that is needed will make the gamemode less appealing to them, but more appealing to the playerbase as a whole.
If you make TDM impossible (something similar to the OP concept) then a lot of the current 3% are gonna be mad. (I don't 100% agree with the OP concept, but I respect the idea of preventing TDM) If you prevent cannon farming points then it means people trying to grind out easy wins for LSD are going to have to play the mode normally, meaning it takes longer to grind, and be mad. If you prevent spawncamping for kill commendations by limiting amount of kills you can get per weapon/per enemy player, it will increase the length of the grind, and those players will get mad. The people playing currently either hate the mode and just want to get the commendations done so they can stop playing, or they are TDMing, I rarely see people in the third camp, which is people who actively play and enjoy the core gameplay of arena.
Its not surprising that people dislike arena when they play a handful of matches, and multiple times they see people TDMing which means there's less conflict, or when half the lobby leaves immediately meaning there's a lot less conflict, or when crews are being held in spawn camp, meaning there's less conflict. Or even if the crew themselves are being held in spawncamp, I can tell you that its not fun to sit and wait for 15 minutes getting killed immediately out of spawn (a lot worse on sloop with more predictable spawn locations) but the gamemode directly encourages this via commendations that slow down the pace of the mode.
In my opinion, if you want to fix arena, you have to do this;
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Remove/Change the Kill commendations so that people don't just TDM/ spawncamp new players the entire match, forcing them to either stay for 15 minutes and have a horrible time, or make them disconnect resulting in a temp ban (which will most likely be their last time playing the mode). Either max out the amount of kills that count towards the commendation per weapon to something like 3 per weapon, or only 1 kill per weapon per enemy player. At least then a ship would stop spawncamping a specific crew in order to go and fight a different one, which would keep the game in motion.
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Remove/Change how you score points when landing cannonshots, 40 points per shot and 1000 per chest means 25 cannonshots = 1 chest. If you're on Gally arena and all 4 of you are shooting at an anchored ship, at 4 cannons per second, you can get more points than selling a chest in under 7 seconds. Either flat out remove points for cannonshots and replace it with points for sinking enemy ships, or make it so that you only score points for damage that causes ship damage, either by creating new holes, reopening repaired holes, or widening holes to different damage tiers. This would mean that you can't just shoot at the Captains Quarters of a Galleon, or the broken masts of Gally/Sloop in order to score infinite points without the risk of sinking an enemy crew.
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Make arena ranked, not a ranked mode, make the entire thing ranked. If you're playing a gamemode that you oh so fondly refer to as the pvp gamemode; there should be no reason to be upset with this. If you're good, you fight good people, if you're bad, you fight bad people. If you're so thirsty for combat then surely you'd want this, as it means you won't just be steamrolling every crew you fight. Whenever people ask for ranked arena I see people say ''oH nExT yOu'Ll WaNt RaNkEd AdVeNtUrE''. There's a very big deference. You might be an amazing and skilled player with lots of hours in the game and very high faction levels, but you still might just want to spend the day fishing. That's not to say you should be immune to damage when fishing, but you shouldn't be in lobbies only with other high skilled/tryhard/serverhoppers that are so thirsty for combat that they'll chase an enemy ship with no loot for an hour and somehow think the other ship is wrong for running. You're playing Arena to fight other players and to win, its ENTIRELY competitive, its very different from adventure.
Multiple gamemodes to accommodate for Classic Chest/TDM/KoTH/Etc sounds good in theory, but as stated prior, 3% of the playerbase plays the mode, splitting that 3% in any way will make queue times even worse then they are. This concept would only be viable once the mode starts to gain more of a playerbase, so that when it gets split, it won't be as detrimental to queue times.
Oh also this is something separate but I've seen it a bit in these comments and it always annoys me when I see it. The semi elitist mindset of ''oh they have a different opinion to me? clearly they haven't played arena''. Like the comment from Flintlock Dan ''Do you really think he plays arena?''. You're reading a comment, you disagree with it, and then purely from that judge them and assume that clearly they don't play the mode as their opinion differs. You can have different opinions and still play the same game. Hell, you could not play Arena at all and still have valid opinions on the mode, that's probably why you aren't playing it, because you have (negative) opinions on it. If your product isn't hitting the desired audience; you then ask your desired audience what they want changed. In Arena's case, you have the current audience, at 3%, and the desired audience, at 97%. You don't just ask the 3%, ignore the 97%, and keep the 3% in their little echo chamber. You ask the 3% what they like about the mode, and you ask the 97% what they dislike, you then improve upon what the 97% dislikes while (hopefully) trying to compromise for the existing 3% if necessary. I think some of what the 3% would want will directly contradict what the 97% wants, as such I don't think its a bad thing if Rare decide to make changes that displease the 3% in some ways. But yea, don't just write off what people say if they don't agree with you, whether they play the mode or not. And just to clarify, I DO play the mode, I may not be an LSD but I've played enough matches to know how often you'll come across issues such as the ones I've described.
Congratulations if you read all that, you clearly have too much free time. But I guess I do too for writing it.