Am I nuts for wanting to 3bet a player like this in hand 1? I've been focusing more lately on isolating bad loose players, and this seems like it might not be a terrible spot. Someone correct me if I'm wrong (and tell me why).

First, he's playing a ton of hands, and even UTG you might have him dominated w/ AJ (you might be dominated yourself ofc), but you are probably at least ahead of his range. I don't think most 52/25's are aware enough to fold bad hands to 3bets to knock out all those dominated/behind hands (maybe this is where my thinking is off, if it is. I often have a hard time grasping what players that are so far on the other side of the poker spectrum than I am tend to think).

Raising also forces everyone else to play their hands straightforward, folding all but their best hands whereas they probably call with a wide range if loose player opens UTG and (assumingly) taggish player isn't strong enough to 3bet him.