Seems like the system has potential, but a few issues.
If there is no "opt in" system or manual pickup for Resurgence Burden then I'll probably be accidentally picking up things that debuff me because my teamamates are bad or out of their depth. Maybe leading to more elitism? Maybe just more mandatory Phoenix Renewal Oberon.
In my experience people die in Arbitrations because they simply can't handle the level of enemies that they're at. This will just mean they die again if they get picked up and that level will approach quicker because of increased scaling. This change seems to primarily affect the people that just oopsie'd their way into being dead which is fine.
Kind of a separate issue but these changes do nothing to changed that Arbitrations are a huge time sink, 10 minutes per interval on average, and that's just not fun. To speak nothing of the huge variable of whether a good mission is up on rotation, screw Defection. Archgun rivens not being behind rng grind and instead regular grind is cool though.