It's very simple to exploit that setup, 2 friends pick opposing Powers and take turns killing each other, or better yet, 1 picks the power they want to support, the other picks an opposing power they want to defeat, guess who gets to die over and over in a Sidey? That's just 2 people, now increase that to 20 or 40 or more people....
That's what I was thinking, but, at least to me, unless the merit reward was massively substantial, it would still be faster, I think, to undermine or fortify.
There would have to be a balance point between the merit reward, and the time taken to launch, exit the no fire zone, die, and rebuy.
EDIT: I mean, people would have to set up a system (depending on the merits rewarded) to make it work well. You need, say 5 players. Four are constantly dying in rotation, rebuying, flying out, and dying. In an assembly line of exploitation.
You're right, groups would exploit the hell out of that.