I think this idea should still be considered, your points are pretty unvalid...
Flack jacket effects can be quite easily removed from the spar, by simply having a script...
if (playerhealth>50)playerhealth=50;
yep... theres not really that much to do about giving both sides an equal chance... as for the streakers, its more of a case of people looking for excuses to hide there lack of skill, a gang could still take out an individual quite easily even if they did have 100 hitpoints...