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These older machine don't get slow because the are tired, or worn out. THey are not humans. They get slow because of the junk put on and off them over the years.
My 2009 27 iMac was slowly getting slower and slower over the year. I totally wiped it clean, reinstalled what I needed and now it runs like it did back in 2009 again.
I talked with on of the geeks in the Apple Store, he told me he does this every year. Makes sense.
 
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No OP, you made the right decision.

It was absolutely time to get a new computer, and it sounds like you got a good one for your usage scenario.

If a smaller screen is more suited to your uses, then you got a good one.
Well it at least suited the budget better. For a while it looked pretty teeny after the 27! In fairness we did not need the huge screen though.
 
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Well it at least suited the budget better. For a while it looked pretty teeny after the 27! In fairness we did not need the huge screen though.
The 21 inch can actually look really cute in smaller spaces, just a charming little desktop Mac.

There are certain home decor situations where the 21.5 inch is more suited, I'd say without a doubt.
 
Well it at least suited the budget better. For a while it looked pretty teeny after the 27! In fairness we did not need the huge screen though.
Different situations call for different solutions. One size does not fit all, and so I certainly can understand why folks get the 21" over the 27" Be it budget, space or just don't need (or want) the larger computer.
 
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