Here is my take on it. Average player, gets the ability to make 8 player arena. HTC hosts so they can't be used for cheating, hacking etc. They don't pay any extra, its part of the arena access that paying customers are entitled to.
For an additional 5,10, ?$ a month players can pay for the right to make a 16 player user configurable arena. Yes its perhaps taking a few more resources, but HTC is getting paid for it.
A squadron gets together. Decides they'd love to have a 32 player arena for squad dueling, etc.
Password protected, etc. Squad chips in and for $$$$ (1$ per month per player?) extra dollars a month the squad CO can create and setup that arena. Because its hosted on HTC he doesn't have to be in it, or online even. It can stay up 24/7 giving squad members a place to meet, greet, practice. Because its password protected you don't have problems with outsiders.
I can think of several squadrons that would gladly raise 10 - 25 $ a month for such an arena.
Being able to choose your terrain, settings etc.
Whats more the Squad Dueling League could have a dedicated setup just for SDL.
With a 32 person max you could easily handle 12x12's and a few spectators.
Settings could be set and left so they are the same for everyone, from duel to duel.