@lizzie not really, no. you don't have to do the goblin/grove quests *at all* but there is more content in the game if you side with the grove because larian got a bit lazy at the end.

if you let them attack the grove and side with the tieflings then you end up fighting them at the city where there are npc guards. not good if you want the achievement where no tieflings ever die but it does mean less mobs / having more friendly mobs.

you can also go do other quests until you level up and then take on the camp. there are some ways to make the camp weaker (poisoning their booze.) there is barrelmancy (collecting all the exploding barrels you can find and precariously placing them all before you begin hostilities so the entire fight consists of chain explosions making the gobbos all lose on the first turn.)