Yes it is totally acceptable to design walls of levels out of other designer's levels. It is actually a really common thing to do in level design nowadays.
For reference, there are designers who have made sets out of the wall arrangements from most of the official sets, all of which were originally custom levels (excluding CC1 and 2). They include:
Joshua Bone's Walls of Chip's Challenge 1, J.B. Lewis' Walls of CCLP1, Jeffrey's Walls of CCLP4, my own Walls of CCLP3, a few others who have done Walls of CCLP2 but are incomplete, and some have also done and/or attempted CCLP1 and CCLP3 as well.
And at this moment in time, I am even in a collaboration project with another designer that is a walls of set! So you are more than welcome to make any level out of any wall template you feel like. There are no rules against it and I personally highly encourage you doing so.