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The Z3 should last you some time barring any physical damage. Eventually the battery will fail, as is the nature of Li-ion batteries. Your local support team should be able to arrange a repair if this happens.
I had to make the same decision. After 2 years usage I was still very satisfied with my Z3 compact, now running Android 6.01. Also the battery is still ok. So, no need for another phone... Because I was not sure if I would keep the phone another 2 years (also with the battery in mind), I decided to continue with the same provider on SIM only for one year. It was a very small difference in costs, compared with SIM only 2 years.
After one more year with this excellent phone, I will consider again the options and make a new decision.
I don't recognize the issues with swiping from the top or the flash button, and I can't tell you wether these could be bad signs...
The battery dropping differently from full charge is known to me. My guess is that this possibly depends on certain apps which stay active in memory, and give a different decharging curve. Also it can happen if your phone is struggling to catch your provider's signal in certain areas. It's no bad sign to me. Try to reboot your phone after a full charge and see what happens then.
There are lots of people that can't wait to get a new phone every year (or even sooner). I think the number of features don't change that much recently. Of course there will be a moment when the Z3 won't get any Android update anymore, but I would be quite happy to use this phone for one or two more years.
I am sorry to hear about this. Can you please test the touch screen by going to Settings > About Phone > Diagnostics > Test. See if there are any areas that you can not clear away or ar not detecting your touch.