Why bother with recruitment? Anybody with enough interest would notice a tab that said "Arena". That's what I did when I noticed so many years ago. I went by a different name then though- not like that matters or anything.
I think with all the power-wank that is the arena, everybody would rather be part of their own little faction with all the different characters they use being in that faction. Of course, there are people who have both "heel" and "face" characters. If nothing else, it should just be no factions, as it's always been. Who needs team work anyways?
I don't know what you're talking about, but as far as I'm aware there aren't tabs saying 'Arena' in the Multiverse, which is IC.
You're wrong, actually, a lot of people like to join the big pre-existing factions with their different characters, because most people don't have a universal theme in which to sandwich all their characters and rarely if ever have a set of characters with applicable morals and ideologies. Also, factions are ultimately just a story tool, to deprive ourselves of such a useful method of story telling would be foolish, it's already hard enough I find to get my characters into convincing fights with realistic motives. Factions help out immensely in story telling, even the little neutral players can run around causing trouble for the people working with factions, where-as neutrals fighting neutrals is incredibly pointless and often makes for a lacklustre fight without proper motivations.
What you seem to be suggesting is we should discard story in Arena and just fight amongst ourselves for no good reason, which is a poor interpretation about what the Arena Multiverse is. I'd recommend reading things more thoroughly in future as many of your points seem misinformed.
Don't take this the wrong way, but when you flounder in describing the Arena as a 'power wank' and essentially pew pewing on the Multiverse and story telling in the Arena, I like to nip it in the bud as soon as possible. You're giving out the wrong ideas about what the Arena is about to new people, which is story telling with a greater emphasis on conflict.