I believe so, yes. I sold my copy of 3 after the mess about with trying to get back all the DLC I bought. I wasn't happy with it.
Did the levels carry over to LBP3? I can't remember. I did buy DLC too for the first 2 which my levels use, hmm. I should check it some time yet I removed it a while ago to make room on the HDD. With less than 50GB free it won't download patches, perhaps it's very fragmented by now. Could just check it on ps3 if can find a controller for it :)