I bought a Viking Rose in about 2001; it was a computerized sewing and embroidery machine. Embroidery seemed so cool...but it turned out to be very expensive (threads, stabilizers, design files, computer programs to convert or edit designs) and often frustrating--embellishing a t-shirt and on the last color the thread bunches or breaks or ... Also, the Rose had a 4x4" embroidery field, and it was a big hassle to use the multi-position hoop to make things bigger. I ended up rarely using the embroidery system.
Anyway, fast forward to 2 years ago. My Rose developed a problem with its touch pad, and rather than spending hundreds of dollars on repairs, and still having an old machine, I got a new quilting only machine (Brother VQ3000) and then spent about $600 on a Brother Designio DZ820E. It accepts a USB drive (no more converter box or expensive cards), and comes with a 5x7 hoop as well as 4x4 and a little 2" round hoop. It's also got a needle threader.
I knew that all I'd want to do would occasional monogramming, small designs, and quilt labels, and the DZ820E is working really well for that. (Note that a lot of the Brother machines include Disney designs--for more $$. This one doesn't.)
So as people are saying--4x4" only is probably too small. If you know you'll want to do huge designs then spend the $$ to get a machine that will do those. But if you know you just want to do small embellishments, etc. you can do well for under $1000.
Best wishes,
Hallie in NM