It depends on what you are using your primary computer for. But yes, i believe it is way outdated if you intended to use it for things like web browsing, video playback and so on.. A heavily upgraded a1200 on the other hand is quite capable. You should use a gfx card instead of aga though if you want to for example browse the internet with it.
The a500 is just not very upgradable. If you want an upgradable classic amiga for daily usage, then you should either get the a3000, a4000 or the a1200. I think the a4000 is the best bet if you want a gfx card and so on, as you need to tower your a1200 to be able to do the same with that.
Btw.. Most a500 had the OCS chipset and not the ECS. Only the a500+ and last revision of the a500 had the ECS.
