We've done Spectator modes in other games - and they can be pretty fun. In particular, our game "Call of Champions" had one of the most full-featured systems for spectators (in its day).
It would be a very big technical investment and it would have implications for hosting, joining, and various interfaces that exist in arenas. Not impossible but when you think of how few people would use the system it becomes undesirable for me. Also I know that adding this sort of thing would reduce the number of players we have in arenas by a small percentage. This is from my experience with spectator mode in COC - and I expect that this option would make matches a little harder to find in PL (and I don't want that right now).
So - good suggestion; not on the horizon for PL.
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