Most of these choices are awesome, and not wildly inappropriate, though after the first time change (maybe after the big diminuendo) the Verdi certainly stops being good fight music. Still, you’ve got a good 80 seconds of action.

But for an actual inappropriate choice that works wonders, one need look no further than: http://www.webhamster.com/

Players should have a Life Bar, perhaps a segmented ribbon that can be clipped off. Losing a fight causes the loss of one segment (and the stakes of the fight). Loss of all segments means ‘dead’. The trick will be to safely implement ‘kewl powerz’ for each of the fighters. Combining SageFight with the hand jive used in Vampire LARPS or the Wizard Duel finger-gesture game (whose name I cannot remember) to show powers being invoked might work. Naturally, the name of the power has to be shouted out by its user, anime / fighting game style!

Examples: (Some of these should probably be treated like D&D4E Encounter Powers — only useable once per fight.)
Vegan Mind Power: pose – index fingers to own temples; effect – for the next 5 rounds, a victory by the Vegan takes two segments off the loser’s life bar.
Summon Demon Hipster Chicks: pose — get a half dozen or so cosplayers to line up behind you ; effect — they don’t actually sagefight, they mimic the summoner’s poses as best they can. If the summoner scores a touch-out on his target, the target loses one extra segment of his life bar for every Demon Hipster Chick. If the summoner gets touched-out, he stays in the fight, but one of the Demon Hipster Chicks vanishes. (Yeah, it’s gonna be hard to set this up, but damn cool to watch!)
Power of Love Sword, or other Soul Calibur style weapons: made of the long balloon animal balloons, two or three braided together or shaped (possibly with a little string to help). Weapons touching weapons have no effect. Weapons touching any part of the targets body are a touch-out — unless the target’s weapon is also touching the attacker’s weapon (a parry). A weapon touching the center of the target’s chest removes an extra segment of the target’s life bar. (This also works for ‘Jedifight’.)
Super Strength / Bionic Arm / Street Fighter Hundred-Hand Slap: pose — freeze touching target’s chest or stomach (gently!!!) with closed fist; effect — target loses one segment of life bar, and is knocked back (has to take three strides backward on the next three counts, and lie down on the floor on the next ‘fight’ freeze) (Naturally, a silver or metallic sleeve is required to mark the bionic arm. For the Sumo Slap version, no sleeve is necessary, and the technique uses open palm to chest.)
Paralyzing Touch: pose – touch target’s upper arm or thigh with crossed fingers; effect – for 5 rounds, the affected limb cannot be moved.
Street Fighter Fireball: pose – make a circular hand motion, then straight-arm push/throw a red Nerf ball at target. If it hits their torso or head, they lose a segment of life bar. Target can block with arms (or legs!) and deflect the fireball.
Street Fighter Chun Li Kicks: pose — the user of this technique is allowed to score touches with her feet against the backs of the target’s hands (requires excellent balance!)
Mortal Kombat “Get over here!” harpoon: pose – throw a Nerf ball on a string at target. If it hits their torso or head, they are forced to come to within arm’s length of the thrower on their next move.
Dim Mak Death Touch: pose – touch the center of the target’s chest with one extended index finger; effect – the target loses the fight in five rounds, unless he wins it first! (Possibly require the player to wear one of those rubbery Halloween ‘claw nails’ on his deadly index finger to indicate that he has the power.)
Wire Fu Leap: pose – arms straight up over head, palms together, up on tip-toes; effect – the ‘leaper’ can freely use both feet and move around, so long as they maintain the arms-raised and tip-toe pose. The backs of the ‘leaper’s hands are still vulnerable to tall opponents, who can ‘air throw’ him.
Ninja Vanish: pose — legs together, standing straight, arms down, wrists crossed in front of waist, head bowed; effect — you are invisible and cannot be touched. On the next ‘fight’ freeze, you may exit the scene without losing.
Iron Body Technique: pose — arms crossed, hands on own shoulders, palm down; effect — for the next 5 rounds, you are immune to weapon touches (except to the backs of your hands), and cannot be knocked back by Super Strength.
Guitar Hero Technique: pose — strike a ‘rocker’ pose with a Guitar Hero guitar, pushing one of the fret buttons (yell out the color of the button); effect — the target loses one segment of life bar if he or she is wearing anything which is that color. (This works with Rock Band Drum Pads, too. Shout “WE ARE SEX BOB-OMB”!) The target may defend by putting his index fingers in his ears, but that will severely limit his ability to score touch-outs while defending…

I could probably go on, but I probably shouldn’t. I have absolutely no idea if any of this could actually work or not, but I’d sure love to try…