Season 1 is necessary because of Raffi, needing to know the backstory involving Riker and Troi's kids and their family, Laris, and Picard's body. Sure you could read a summary of who these people are and the story but it works better having seen the season. Two doesn't matter at this point.
Count me in as one of those who, as we get a little distant from season 3, thinks season 1 is the better season and the best of the three. It certainly had better writing, characterization, and actually had something to say. I really enjoyed season 3 for the most part and had a good time, but it only made me appreciate season 1 more. Raffi has never done a lot for me and Elnor was kind of a flop but I thought Rios, Agnes, and Laris were good additions to Trek. I enjoyed seeing seeing a more disillusioned Picard, a hardened Seven, and a more world weary Riker and Troi. It's not 1992 anymore and I think seeing the heroes in that frame of mind and state is important and, at least for me, what I'm looking for in shows these days. I thought the goodbye to Data was really well done too. That they basically keep all the plot points but reset all the characterzation is a shame to me.
I think it's a shame Patrick Stewart, the producers, or whoever got scared off because of certain reactions and basically gave us TNG Season 8 fan fic edition. Again, I enjoyed it in the end and had a good time. I'm grateful we got a fitting goodbye for them. I just find myself wishing it had been a little more in line with season 1 than what season 3 ended up being. I certainly wish it had had more of season 1's thoughtfulness and insight. Season 3 had a lot to say about family, but not much else in the end.