Your setup looks like it’s showing its age. How much you could/should salvage depends entirely on how much of an upgrade you want and what your budget is. You can of course keep using your peripherals as long as they aren’t giving you any trouble.

If you are looking for some inexpensive upgrades, I would look at getting an m.2 SSD and at least 8gb additional ram. You could also do some things like uninstall unused software, clean out any crapware or any unneeded processes, defrag your hard drive, or even reinstall your OS.

No idea where you live or what performance targets you would be looking for, but you can get a decent prebuilt for around $800 USD.

I use mine to play some Steam games and to run emulators. I haven’t had any compatibility issues, but I also tend to stick to games that are Steam Deck verified.

As far as how good it is, it’s the only handheld pc I’ve used personally, but from reviews and discussions I’ve seen, despite other handhelds being more powerful, Steam Deck is a solid contender because of its price point and SteamOS being purpose-built for a handheld, whereas Windows is not.

Minecraft or any number of the farming/life sim games out there. I’ve dug countless tunnels in Minecraft while listening to various things.

No Man’s Sky would be good for the same reasons.