The reason we sit and wait for ages during Sudden Death is always because people camp. There is no reason to camp here because after 60 seconds (and since you only get one life, most people will be careful enough to live that long), a Control Point opens, and you pretty much have to fight over that. With quick kills and one life, capping it should be no problem after one tiny brawl. Think about it - would this take a long time? No, not at all. And really, you have the spectator camera, why don't you go ahead and spectate for the remaining ~30 seconds and see if your team can win or not? I mean, that should be entertaining enough to make the "respawn" time worth it.
EDIT: And the reason people don't like waiting 10 seconds to respawn is probably because they know that they actually can help their team in a short while, they just have to get out there again ASAP. But in the Arena mode, they don't have the pressure of knowing that they can help their team in a few seconds, making the wait much less stressfull.
As we all know, people love to hate great games, so yeah, I kind of agree that this won't be liked so much by the public. However, I believe that most sensible players should understand after some tries that this could work and that it could be a lot of fun.
I'm not saying that I KNOW it will be like this, though, I just don't think it'll be a problem.