PvP should be about killing other players. If you're good, that's fantastic, have at it. There's no need to flaunt it all over the place, though. Your reputation will carry itself, you don't need a team-comp-based number to point to and go "lookit! lookit! lookit what I can do!"
If Arenas award exactly the same thing that warfronts award now, I am in full favor of it. No ladders, no special titles, no special gear, nothing. I love the idea of just going into a match with the intent of killing someone else - that's why I PvP. I don't want titles. I just want to kill other players.
(Oh, and that 500k people you quote as active arena-goers...That's in a game of...what, 11-12 million people? That's a 1/24 fraction of the population. Sure seems like the "silent majority" to me, or at least the one everyone seems to be quoting).