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Losing a Taoist Master level Divine Artifact was regrettable, but for the advancement of the Cycle Divine Palace, all of it was worth it. Besides, the 33rd Heaven Creation Pagoda was not destroyed, it merely fused with the Cycle Divine Palace, turning into a Magic Treasure.
The 33rd Heaven Creation Pagoda, a Divine Artifact forged from the Original Source of Innate Pure Qi, shares the same origin as the Heavenly Realm. Therefore, only it, and it alone, could merge with the Cycle Divine Palace and help it transform into the embryonic form of the Heavenly Realm.
As for the Cycle Divine Palace, it concerns a grand design of Jiang Chen's. He planned to turn the Cycle World within the Cycle Divine Palace into another Boundless Starry Sky.