Thanks for your patience.
Now that the rebirth process includes a removal of worn equipment, and restriction of skills, they are now re-admitted to the coliseum.
We understand that rebirthed characters have advantages over regular mortals, but after giving everyone ample opportunity to express their opinion on the issue, there is a wide consensus that the players are content to have the rebirths in there. And some have pointed out that it's perfectly fair in the end, given that everyone who reaches 9x40 will have the same opportunity, and that many of these players never had a chance to run the coli to begin with.
There is one exception. I'm keeping the sub 20, newbie level restricted. I don't really care to see these characters getting 8x20, crushing the newbie level and getting a bunch of honor for it.