Merlin is very useful but not at all necessary. Think of him as an unfair power-up or cheat code that the game offers you to make the game easier. It makes the game much easier to play but with you can still complete the game with 3 stars and a friend support with clever strategising and good ol' RNG. But he does have incredible synergy with a lot of servants and team compositions, and having him will allow you to do the Memerlin wombo-combo team.
You have Jalter which is arguably the best servant to pair with Merlin, so I don't see why you shouldn't save for Merlin, unless you have another servant that you like over him.
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