I wouldn't go that far...
...if you've never played Animal Crossing before, or perhaps only dabbled, then it's definitely the best version available.
But if you've played either or both of the past two, and done a lot in them, you're probably going to find yourself wanting.
I find the comparison best to Street Fighter II. Barring the NES games, the Cube game is SFII, Wild World is SFII Turbo, and City Folk is basically Super SFII; if you were going to start anywhere, this is the best place, but if you've been hardcore since the start, you're probably not going to see as much value in it.
Of course, this is all provided that Animal Crossing is even right for the person playing to begin with.
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