Having it hosted by GMs would make of it something special and well organized.
For the rest you said , pointless. If you arent sure of your abilities in 1vs1 you dont have to partecipate.
Not only *rich* people are good in pvp , just to let you know.
Back to the subject:
No kaizel allowed if you are using a sl.
If you got a hwiz icewall is permitted as long as you keep on fighting , if you just spam it and shield yourself you get disqualified.
Ah and i think also that the more people partecipate , the bigger should be the prize for the first , second and third place.