[OutlawDr]

I've also been thinking this is a more realistic approach rather than true esports.

Think about it as war correspondent covering a battle. However is this enough to capture the attention of players? Why would you want to spend time watching it? Would you watch this over just playing it? With esports you watch top teams play the game at its highest level, and most matches don't last more than an hour (depending on the game). You learn from them, and awe at their awesomeness.
But with this, you could be watching for longer, since there is no clear end point. And instead of watching pros, it could simply be your friends and outfit members, at which point you want to log in and play with them, or against whoever is being covered. Again, whats going to make people want to watch over playing the game?

Maybe as an after battle report. Something that summarizes what happened, but after the fact. I think there will be problems with a live stream thats following the battle as it happens. Unless people are both playing and watching the live stream simultaneous...I could see a demand for that.