I am not aware of a good sewing machine repair person in my area, so I'm wondering if you have one where you are. If there is one close by, then you should definitely have your current machine checked out to see if it's problems can be repaired easily and inexpensively. But if it will not be cost effective to fix it, then by all means find another machine.
Cheap is not always bad. Before I got my Featherweight I had decided that if any machine I got was only going to last a short time (the experience I was having back in the late 90s and early 2000s) then I would just get the cheapest one I could find and replace as needed.
Over the years I've had good machines and not so good machines that were in the $100.00 and under price range. Some were bought at yard sales (mostly the not so good ones!), others at Walmart. My most recently purchased one was a Brother that was the least expensive one Walmart had at the time - $69 on sale. Did not give me any trouble in the 3 years I had it. I passed it on last year to a friend who did not have a machine as I was using my Featherweight most of the time anyway.
Like you I would eventually like a machine with at least some of the bells and whistles, but for now, I don't really need it. Good luck with your search.