yes, this is how it is done in Skylanders. Yes for families with multiple saves/profiles (like Wii U, 360) it is a pain.
As for lots of "single characters" coming out, my guess is that Disney is REALLY counting on a lot of high quality toy box levels coming from the community for the time being. On top of that, myself and others are believing that Infinity 2 (or whatever) will be be/offer a more traditional Skylanders-like experience, allowing you to swap characters in and out of the game, etc. I mean it's the only logical answer, because as-is, the single characters don't hold a lot of appeal. They can't level quickly because they can't participate in playsets, and the built-in toy box stuff disney offers is only good for a few hours at most. I've been reading previews that have had pretty much full access to Disney/Avalanche for the game, and they all seem confident Disney has a really strong 5 year plan for the franchise. This leads me to believe that we aren't going to see Series 1 phased out with only access to series 1 content. My guess is, much more so than Skylanders, Series 1 will remain series 1 and on store shelves (for a time) and simply then work in Infinity 2.
also remember that the spin setup is REALLY well done. If there's a particular camera/item you want, you can keep shuffling until it comes up and then usually can grab it with typically less than 10 spins.