NG2 is a better experience than NG1, more streamlined, better action, faster paced, but there are certainly areas where NG2 failed. NG1 is certainly guilty of having many flaws as well.
>awful camera
NG2 camera was just as good as NG1, except you couldn't rotate camera while charging UT.
>enemies spam projectiles
This we can agree on. The enemies overcompensated with ranged attacks to counter Ryu's close combat dominance, and was not balanced well
>constant frame rate dips
The only time this really was an issue was during the staircase fight, at worse can be seen as a trade off for the more frantic gameplay resulting from more enemies at once
>bad graphics even for its time
I disagree, the demon cave before Elizabet fight was breathtaking
>unbalanced difficulty
NG1 guilty of this
>horribly cheap moments
NG1 very very guilty of this, the bosses are invincible half the time
It's feels like a little like comparing Resident Evil 4 to RE:make, they're both excellent games but they do different things despite being under the same roof. Although the difference is not quite as stark, NG1 & NG2 are both actions games, whereas RE4 is more action orientated with barely a hint of horror versus REmake is horror orientated with hints of action.
The most defining differences between the two is that NG2 does its best to be both streamlined and over the top (sometimes at the expense of balance). NG2 pushing the player to constantly be dodging from pursuit of many enemies while abusing invincibility frames to create openings, whereas NG1 is slower with fewer enemies and more of a "keep blocking or rolling while you wait for an opening".
The "arenas" in each game certainly highlight this difference. Most of the combat in NG1 felt like traveling from room-to-room, with a enemies to be defeated once in each room. Many times there would be locked doors or puzzles before you could get to the next room, and this is how the gameplay was paced. NG2 would have long "corridors" of areas that weren't divided by doors, it was quicker to get from enemy nest to enemy nest.