Rulings

Only the +1/+1 counter is contingent on having three or more creatures with different powers. The target creatures will still fight even if you don't have three or more creatures with different powers when Duel for Dominance resolves.
If you control three or more creatures with different powers and the target creature you control is still a legal target as Duel for Dominance resolves but the target creature you don't control isn't, you will still put a +1/+1 counter on the creature you control. It isn't much of a duel, but your creature is still dominant.