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Adding new rules to block IP should not mess anything with fail2ban.
You need to be careful about that iptables rules will be lost once you restart server.
To save them permanently, you can use iptables-persistent. If you use it, be careful that you don’t save Fail2Ban block rules as there is some chance they’ll stay forever in that case (instead of given time, or given time after reboot, I didn’t test it).
About first, image should work flawless even it $5 Droplet. You need to be very careful if you have higher traffic, as in that case, server can go down easy. Adding swap or upgrading Droplet could be needed optimization for lower Droplets. On higher, I don’t think there are some settings. You can look around MySQL settings, but they’ll work flawless with defaults.