I use mine with a ThinkPad USB C dock, which works just fine. I also have a workstation with a Dell USB-C dock with ethernet and it works fine with M1 Pro. I would recommend to look for used business docks. I have seen some Elgato or ThinkPad docks for below £100.
I would not consider this machine done just because the keyboard is broken. It may require a replacement, but that should not cost too much, depending on the model. I would recommend you take your machine to a trustworthy repair shop to get an estimate and diagnosis. I would say it is time to replace the machine when it no longer does the things you need it to do without getting in your way or being an issue. If you can still do the things you want it to do, I think you should stick to it a bit longer.