I don't see in the OP how winners are determined other than by not falling. Is that it, or is there some goal?
Doing this in the Wild might make it more challenging. As far as a goal/game, I can only think of a few of things. One is a variation of spleefing where you can dig others blocks from under them as well as build. You'd probably have to have rules where your blocks can never touch another teams and you can't go onto another team's blocks. You would also want to arrange the starting locations so that all the teams have the same number of neighbors. I think a game like this would require good strategy and teamwork to win - Builders, spleefers, crafters . The other would be to build something with some set requirements. Maybe a house of certain minimum dimensions with doors and wnidows at a certain elevation. Possibly a king of the hill variation of the above. Put something up above everyone and they have to build to it and hold the area against spleefers for a set amount of time. For example, they have to hold it long enough to smelt several iron ingots in a furnace that is up there or harvest some wheat that's growing and return some amount to their chest.
Updated OP! Im looking for builders: http://empireminecraft.com/threads/hiring-arena-builders.14410/ Coming Soon: Ways to win