Given the quality of entertainment, you have a point that there is a market for this "snuff".
Legally, as you intone; and ethically, as you imply, we are past that.
But you point to a market of desparate warriors that is less than where we last left the last gladiator bleeding in the sand. At least they devoted their lives to the ultimate conflict. Well, it's really no great leap from Roseanne and any fat slob can be a TV star to, now, according to your scenario, any fat slob can be a gladiator.
Might as well use FOIA to stream prison riots, flash mobs, and street fights aka, youtube. Methinks the thing would die from lack of quality. Thumbs down.