I hope I can remember all the comments I wanted to respond to.
First of all, were'nt the AWI arenas limited to only 50 people?  It's been a while so I could be wrong but IIRC that about doubled in AW2 (or was it 3)?  Anyway, there's a solution for those nostalgic for the old days; make a bunch of arenas limited to 50 players each with pyramids for mountains that cause you to explode if you touch them.
That thought leads me to this next one; an arena with 45 players in it 
can actually be more fun than one with 200 people, particularily if it's a small map and everyone is fighting.  I'm not sure why more people don't just give Blue a chance.  For my own part I just log into whichever arena's open but I will try to change or even log off if the only one I can get to has a lame map or no good action.
That leads to this; for the most part it's easy to get into the full arena as long as you knock on the door a few times.  The only time that's not true is right after noon central when the caps first take effect.  I got disco'd during that stretch one weekend afternoon and just logged off.
I agree that the caps can be frustrating.  For me it's not a squad thing but I hate being disco'd and not being able to get back in.
In conclusion, I don't think anyone (except maybe the SOAR's) want to play in an arena with five people and no fighting so to that degree I think HT's come up with possibly the only solution possible, however, I do believe there are tweaks that should be made.  I think Orange should always be big maps and Blue always small maps and the caps should be 2:1 between them.  I think the timing of the implementation and release of the caps should be revisited, particularily on the weekends.  I think there should be some accomodation for a player who discos and for those in squads.  A few tweaks like this would alleviate a lot of the most frequent frustrations and still retain the intent of the caps.
I can't think of any other viable solutions even though I am a genius.   
