How about eliminating the early or mid war arena and create a new arena that has friendly fire always turned on.(like the FSO setup)
That would make it more realistic.
There could be a penalty for shooting down a friendly such as a half hour wait to respawn and a longer term ban for repeat/flagrant offenders.
It seems the early and mid war arenas are underutilized at this stage of the game.
I think that depends on what your idea of underutilized means. I play mostly in MW, and I see mostly the same players there all the time. Its a closer knit group than the LW arenas for that reason alone. Im not saying anything bad about LW... I have played there too, but it is a VASTLY different experience.
EW, MW, and LW each have their purpose... to provide an arena where planes from different stages of the war can do what they were meant to do. Not every plane that was used in EW was still being used in LW... so if we got rid of them, there wold be a big list of planes that no one wants to fly anymore.
If I want to fly a p40, or the soon to be released Brewster, I will most likely do it in EW or MW. Not in LW with all the hi performance 51's, spits, and hurri's darting around. You tend to see a wider variety of planes being upped in MW, and in EW you have to deal with the challenge of planes that you have to really know your way around to be any good at.
So... are there a lot less players in EW and LW? Yes. But come and play in those arenas... you will find its a much different play experience than LW. They are all good, just depends on what you are looking for.
But adding another arena with the ability to accidentally shoot down your wingman wouldnt be a bad thing IMO... no need to get rid of anything to do that. Not sure how often I would play in it if that were the only thing different about it though.