Hi, I thought it was well done and had some good moments. Not how I would have done it, but that's not relevant - you should be encouraged to develop your own style, in accordance with your musical personality.
I fully agree with an initial statement of thematic material that is fully recognisable as the composer's original; then you can do whatever you want with it, as long as it is musically and structurally coherent. The use of a contrapuntal section was a good idea, bearing in mind the source material. In a wider context, I would be picky about using such techniques - for example Thalberg used it in some of his early operatic paraphrases, and there I felt it sounded a bit out of place.
If you want to write more such arrangements, you will have to think about
a. how "free" you are allowing them to be
b. if they are to be on one piece of thematic material, you are in effect really writing in the theme and variations form and thus you will need to deploy standard mechanisms of contrast: mood, dynamics, major/minor etc., especially if the piece is to be of significant length (I noted your contrasts in this arrangement!)
c. if they are to use multiple themes, do you bring them in in the chronological order they appear in the original, or do you select order of presentation in terms of musical/compositional convenience? Structurally I find that it helps with cohesiveness in longer paraphrases to use contrasting themes, intersperse one with the other, then bring the other back, to give an example AABBAABA form or similar. I like to use cadenza-type interludes as one type of mechanism for switching between themes (transitional passages). I can't remember which composer said that transitional passages are the hardest to write convincingly, but I do normally spend more time over them than on manipulating themes!
In any case, just a few thoughts there, from my personal experience writing them. However, as I said earlier, I would encourage you to develop your own musical vocabulary and style. Good work!