This is a bad idea. In competitive play, fine, take away the spectator camera, but for regular pub play there is no reason to take away the free spectator camera. It's already sucks enough dying within the first few minutes on a crowded server, but not being able to fly around and watch other players fight just plain sucks.
Warband has such a good combat system that it is probably one of the few online games that is actually FUN to watch. Two good duelists fighting is a pretty awesome thing to see.
Also, locking spectator camera sucks for new players, since the ability to watch better players when you are dead is a great tool for people who are just learning.
The spectator camera also allows you to see the dominating players and builds are on the server and adapt accordingly. I also think it reinforces community on the server: When everyone is dead and the last two or three people are hunting each other, it's a bit of a rush knowing that everyone is watching and it gives players something to talk about.
Finally, free cam is just MORE FUN.
I think the ramifications and negatives far outweigh the positives in this case. Still, I agree that free-spectator mode should not be allowed in competitive tournaments: That's just silly. That should be a server option, however, and not a cRPG mandate.