Sounds good, but I'd like an option where you could "attatch" to a hero and watch from outside the actual battle. It would be like watching a demo, where you can only see local chat, and the console is hidden, but you can rotate the camera to get a clear view of the action. Perhaps you could have a list of all the participants and the ability to switch between them at will.
What happens after your camera is destroyed? Do you booted out of the match?
I'm thinking that before the match starts, you could invite people as observers. I'm not sure how viable this is in CoH, but an RTS I played a while back called Strifeshadow had the ability to allow a virtually unlimited number of observers by making it so that the players didn't have to wait for the observers to "catch up". Any sort of lag would show up to the observers as a skip in the action, while the players only had to deal with latency in relation to each other.
Personally, I'm less worried about 'cheating' by giving away a hiding player's position (and that's all you'd be able to do, since the console is hidden). Who wants to have a long, drawn out match of hide and hide? The possibility that someone will give away your position only makes it harder to play like a weenie.