No you do not need the camera, can play it without. Have heard that it is hard to read the cards with the camera. Not tried myself as I have no camera.
Do not need the play the first one to enjoy this one.
Fun factor is dependent on if you like a sim type game. I find it fun creating the garden and figuring out how to make some pinatas residents and how to romance them. Lots of pinatas to place in your garden will take some time to have them all as residents, so the play time can go for quite awhile.