Serves its purpose as the first coming-with-the-game battle level nicely I think.
Battle 3 is cool but sort of lopsided. I like Battle 2 personally, because there are no powerups and some interesting areas to fight in, but frankly Battle 1 is hosted so often because it really works well. I don't know if it's perfect, but for all we know, it's the first battle level ever, so it doesn't have to be.