I dont think it adds anything to the game.
I hated it at first, but in its own window I dislike it a lot less now. Still wish it was its own channel completely, but oh well.
I do think one positive is it makes the arena seem busier. It also gives immediate feedback about what's happening around you. When you see a friendly in your area kill someone you see who it was and it can inform you about who else is likely in the area. YMMV on whether that's a good thing or not, but I like it.
Wiley.