Big difference, other than price, is resolution. The AFR sensor is more like a wideband O2 sensor than your conventional lamba (O2) sensor. Lamba (conventional O2) sensors only respond to a very narrow range of values - outside of that range, they can't read properly. An AFR can respond to an extremely wide range of values, making it possible to tailor the air/fuel ratios to much higher degree than before.
Same as your 2007 Camry and 2005 Corolla (assuming 4-cylinders on both) - both use a AFR sensor for the upstream or pre-cat sensor. The downstream or post-cat sensor is a conventional lamda sensor. If you had a V6 on the Camry- then you are looking at two AFR sensors and one conventional sensor.
You treat them the same way as a regular O2 sensor - when they fail, your replace them with the appropriate type.