Diablo 3’s Team Deathmatch is not coming out in its current form, according to Diablo 3 Lead Designer Jay Wilson. The anticipated game mode is technically finished, but simply not providing the level of long term engagement Blizzard was hoping for. “Simply fighting each other with no other objectives or choices to make gets old relatively quickly. We’ve brought a lot of people in to try out Team Deathmatch and, while some found it entertaining, most of our testers didn’t feel like it was something they’d want to do beyond a few hours,” said Wilson.
PvE focused character class design certainly didn’t help, apparently. “In a casual PvP mode, something equivalent to a WoW Battleground, this would be fine, but Team Deathmatch felt very hardcore, and it put a laser focus on class balance in a way that we didn’t think would be good for the game as a whole.” As a result, Blizzard is going “back to the drawing board on a new replacement for Team Deathmatch,” in addition to the Dueling, which will be supported in version 1.0.7.
Source Blizzard