Did they name MTG Arena after the MTG book?
Nope, MTG Arena and the MTG book titled 'Arena' share a name but for different reasons. Wizards of the Coast named MTG Arena to reflect the digital battleground where players duel it out, much like an arena. The book 'Arena', though it's set in the Magic The Gathering universe, wasn't the direct inspiration for the game's name. They both just draw from the gladiatorial concept inherent to the competitive nature of the game.
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Actually, the MTG Arena game and the 'Arena' book are just coincidentally named. The game aims to provide a virtual space for players to compete, hence 'arena'. It's all about the vibes of battling it out in a digital space, not a hat tip to the book.
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