Since I use Firefox now I like the sound of the temp folder thing. For IE it sounds like it will be a headache for most users who aren't tech savvy in the slightest.
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Nothing that big. The main point would be to run small untrusted files. Something that is under 10MB and you want to use but think it might have a virus. You could run it inside ArcadeOX and not risk being infected by the virus.
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Can you elaborate on how this would work? I'm under the impression that nothing online is every truly safe. If there's a way to access it there's a way to exploit it, right?