By removing all ranking points received upon death you're effectively removing the measure of skill for that player and introducing a system where luck can and will triumph skill. Near the end of every match, those who know they've done well will simply avoid combat for fear of losing their reward. Please consider the ramifications this mechanic would have on the entire system as a whole. While luck has it's moments, Arenas should be primarily skill based.
As someone who lives for PvP, I cringe when I imagine a scenario in which the best player ends up last place moments before the end of the match.
Players will no doubt adapt to this mechanic and the "best player" would become synonymous with the "best coward".
Suggestion: Remove this mechanic entirely or significantly change the death penalty from all points received to a fraction.