I'm about the same height as you and, looking at that Diamond back, I think I'd happily ride it. Effective top tube (measured horizontally) is probably 22" so it's not
that small.
In other words, it's about the same size as the '88 Kona Explosif that I used to race on back in the late eighties/early nineties and I did reasonably well on that, so.......
Of course, back then we used to use 130mm stems and stupidly narrow bars whereas now I wouldn't use a stem over 100mm (that's what I have on my old Kona now) nor do I use bars under 660mm wide.
I find that the wider bars seem to compensate for the shorter stem as far as fit and handling goes.
It all depends what sort of riding you want to do and whether you want to keep it period correct (stupidly long stem and narrow bars then) or not.
Take a look at that
Carver 96er of mine in the post 1998 bikes section - that, on the face of it, looks too small but, after a couple of rides, I'm finding it to be a really playful little thing......
