No, replacing the entire camshaft is not the only right way to repair it. Speedi sleeves were designed for heavy industrial applications and it's commonly used all the time as an inexpensive and acceptable form of repair for rotating shafts.
For sealing the shaft and the sleeve you can use RTV if it did not come with glue.
As I mentioned before, there is a certain roughness that is required on the shaft that the oil seal rides on (see Parker Seal Design Handbook). When you sand the shaft now you've just changed the designed roughness. Too rough, the oil seal gets chewed up. Too smooth, the surface doesn't retain lubricant and once again you risk ruining the seal.
For sealing the shaft and the sleeve you can use RTV if it did not come with glue.
As I mentioned before, there is a certain roughness that is required on the shaft that the oil seal rides on (see Parker Seal Design Handbook). When you sand the shaft now you've just changed the designed roughness. Too rough, the oil seal gets chewed up. Too smooth, the surface doesn't retain lubricant and once again you risk ruining the seal.
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