Technically any arena that is magic themed is a valid entry, but in order to complete the challenge it needs to at least provide a way to obtain the wand, hat and spells from the Magic PvP framework data pack. The LVL 1 instructions feel like the bare minimum to achieve this, but if you find another way you can go ahead (just make sure you remove the data pack before publishing) =)
The advantage of completing the challenge is that users can just pick & mix any spell data packs, maps, skins and resource packs for their battles. By providing the items from the framework data pack, you prevent users from needing to do any set-up or run any commands to start the fight.