Yes. With only 32GB, the "Use the cloud, Luke" is a bit pushy. The only thing selling me is the desire to get the USB Type C.
I've experienced what you are talking about, every time I get an OTA for the Nexus 5; the performance seems to degrade dramatically.
We're looking at spending $400 every 2 years to stay every other gen Nexus? That isn't horrible (55 cents a day or so). But if we pay for services to avoid storage on the phone, the cost rises.
Nothing about the CPU/Etc makes me think it's time for an upgrade.