Live cam data can be useful in analysis of failures.
And I assume a sensor can tell you “this piece stopped talking” but a camera in right place could tell you “because it fell off when a screw fell out”, so presumably they’re complementary.
An early Falcon 1 launch failed because the first stage recontacted the second after staging. You'll note one of the F9 cameras is looking up at the second stage from inside the first stage's interstage section.
So sure. You could put huge chips in hot boxes with delicate glass all over the craft. Or could you wire in a bundle of little sensors that tell you stuff you'd never get from light.