I believe it was the last PC Gamer article that outlined the specific 10 level segregation for the arenas. They didn't say anything about restricting the PvE side of things.
They have said from the very beginning that people would be rolling in weapons and there would be no worries of shortages. How they manage that I haven't a clue, but I really doubt it deals with crafting. Since they have NPC merchants I imagine they'll actually use them. Contrast an RPG with an FPS and there is no purpose in wasting the amount of time it takes to set up a market system if it won't be used.
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If you can't describe what you are doing as a process, you don't know what you're doing.
~W. Edwards Deming
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