It would probably increase arena participation, but doubt it ever happens. With a 1-year product cycle/increased cadence there’s just not enough time to do the whole progressively nerf thing. I also think again classic players are more towards the “alright boys cya next phase” mentality vs grinding a tier for 20 straight weeks these days
PvE lords have came up with parsing and speedrunning to artificially inflate the difficulty, really don’t see many complain about the level of difficulty much at all in Classic.