I have never personally used a mini sewing machine, but I have sewn, altered and repaired many different items of clothing.
The most useless machines are those which can only do a straight stitch. Yes, you can sew a seam and hem, but you cannot overcast the edges, apply patches or sew stretchy fabric with only a straight stitch.
The stitch options on the machine you show in your question are much better, but still limited. It has a straight stitch in several lengths, straight stitch shifted to the left and zig-zag stitches in several widths. That should be enough to alter and repair most articles of clothing and even sew simple clothes.
Depending on how short the arm of the machine is, it will be more difficult to sew things in the middle of a bigger piece of fabric (like a quilt or a patch on the knee / ellbow). Many mini machines I saw also don't have the option to sew tubes like sleeves or leg hems by removing a part of the housing.
I do expect such "mini" machines to have a weak motor, though. It will probably have trouble sewing through denim or similar tough fabrics, especially through several layers.
In summary, a mini sewing machine is a good option for people who only sew once in a while and only do easy projects like shortening a curtain or repairing a hem or a seam. If you want to do more than that and have the storage space, I advice looking for a second-hand normal sized sewing machine including accessories like sewing feet (or in this specific case: keep the machine you currently have). There shouldn't be too much of a price difference, unless you go for collectors or antique sewing machines.
I'm a firm believer that any 2nd-hand sewing machine from the 60s - 90s era performs better than the modern cheap consumer-grade machines. If you want comparable performance from a modern machine, you'll have to dish out for well-known, high-quality brands or an industrial-grade machine.