I agree with Keriann. Yes, you should really let them dry out. Matter of fact, once my seedlings are as big as yours, I let them dry out pretty much all the way before I water again. You can tell they need watered when you pick up the flat and it feels light as a feather. Then after you water, it's much heavier. Your method of bottom watering is quite unique, I must say. I think that most folks bottom water the way I do, which is to say setting the cells or cups into a tray of water and letting the plant absorb as much as it wants until you see moisture on the surface of the soil (usually takes anywhere from 5-20 min). Now, I can't say for sure what positive or negative effects your method of watering might have, except that it sure sounds like a pain in the hiney to me, and I somehow doubt that the soil is getting properly saturated. You want to simulate mother nature; a soaking rain. Then you want to let the soil dry out. That's how it is in nature. Roots need water yes, because the plant needs water, but then they need to dry out and get oxygen. Damp soil all the time = no oxygen to the roots. Now, I can't say for certain what part of your program is causing your issues, but I would start bottom watering them as described by letting them absorb water sitting in a tray. I think you will find that using this method, you should only have to water every 3-4 days, or less. I would lay off the ferts for a while, and then make sure only to fertilize when the soil is already damp, or you will burn the roots. I just mix the fert with water, then pour into a tray and bottom water as usual. Give this a shot, see if that doesn't help.

"Once every couple weeks" is probably not sufficient for anything planted this season. Newly planted trees, shrubs and large vines (like wisteria) need frequent deep watering throughout their first couple of summers in the ground. Once or twice a week with a slow trickle from the hose at the base of the plant is going to be more appropriate and encourage good root development and proper growth.

I would expect a recently planted camellia to loose some foliage as part of transplant shock, especially if the soil has not been mulched, it is almost the start of summer and the soil does not look that "moist", Make sure that it is planted slightly above the surrounding soil. While it can handle full sun, it may have a hard time if it was planted almost at the start of summer. Make sure the soil is kept as evenly moist as you can. Water if the soil feels dry. I could not enlarge either picture enough to see leaves individually. I assume that browning of a leaf is due to water issues or dropping of old foliage (happens in May-June). Not sure if you have brown spots though. A close up of a single leaf with those spots would be useful. Give it 2-4" of mulch up to the drip line or beyond. Water the soil (never the leaves) with about 1 to 1.5 gallons now that it is getting warm or hot. No need to fertilize if it still has those round fertilizer pellets. In that case, fertilize next year in Spring. Where are you (city, state, USDA Zone)?

I concur. They are getting too much water. The buds will open when the plant variety deems that it is appropriate. Many Camellia japonicas will start to bloom anywhere from December to March/April. Cold temps may also cause it to temporarily stop opening blooms and start again a few weeks later. Regarding oedema, water less frequently during winter if the soil remains moist and there is enough rainfall to maintain the soil moist to a depth of 4". Once oedema has occurred, the affected leaves should not be picked off. If outdoor plants show signs of oedema, check the soil for waterlogging and improve the soil texture by incorporating organic matter such as leaf mould. For plants growing in permanent containers, decrease watering and try to improve drainage by using bigger drainage holes, new pots or repotting with new potting mix, if necessary. I have observed leaf damage similar to picture to #2 in some japonicas that get too much sun (they should get shade by 10-11am).