I'd be fine with it. It would be quite fun, in fact. It would be amazing if everyone was a god but had different powers, some awesome like ability to fly or become invisible at will, and some that are equally awesome like the ability to spawn pizza and cookies anytime you want.
I think we would very quickly have worlds all our own that we create which are then used as pawns in a competition/battle. There was a book series about a boy and his dragon Bazil Broketail that had a book with a similar premise. A group of elves created a slave hive mind of humans they then used to power themselves and their games. Each player could create their own world and groups competed against each other for dominance.
MORTAL KOMBAT