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I think a Monster Arena is an awesome idea. Whenever someone goes in to fight the stuff they've caught or the stuff that the handlers have bred for them (the NMs) it would create an instance that others could enter and watch from the sidelines. Implement a betting system for the spectators and I could see this being a huge success.
However, I don't like the idea of catching open-world NMs or anything like that. I would prefer if the NMs in the arena were unique to the arena. Not like it would be hard to make up some more NM names and reskin some mobs or whatever.
I'm also against Blitzball in XIV. I never enjoyed it much in FFX, and I don't think it fits in very well with the game world. Of course, we haven't seen exactly how, say, the Garlean capital looks as far as sci-fi and tech goes, so it might be possible that it could exist there. Still, Blitzball is kind of a FFX-exclusive thing in my eyes.
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In Final Fantasy X Bosses were unable to be captured, so it has no sense NMs could be captured in FFXIV, at least all them.
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Its not about "capture them" ... its only a gameplay-style-like competition when you already defeated those bosses. i mean it could be represented as a dream, a nightmare.
In AION you have such kind of Arena... where you fight in rounds(stages) and competing against one boss after an other. and the appearance of the arena changes as well appropiate to the boss' appearance. its hard to reach the 10th stage. its something for the hardcore players, who reached everything:
(at 2:50)
But i think its too early for that for FFXIV. thats something for the 3. or 4. addon ;D