Burning objects require system resources that the more you add, the lower your FPS will be. AH3 is in alpha. The open beta when ever it starts, will give you an idea what Hitech thinks PCs can handle while hosting an arena of 600 max.
Have you thought about the relationship for this specific game, to the maximum numbers in an arena, to the amount of eyecandy to allow the numbers of players the MA can host?
It's easy to load up eyecandy in an arena less than 10 miles square, with two or three dozen players running around at any given time having eyeballgasims.