Value-based Living
We get into debates like this a lot... right and wrong. As we learn, we realize we want to spend very consciously, deliberately, according to our values. And we do each have different values. But we do share some, and one thing we're hoping we can educate others on, are the "values" that get implanted in our heads by advertising and a consumer-oriented culture.
Many of us grew up seeing commercials with tough gals and guys driving big trucks. The 90s Dodge RAM is an interesting example of this. My dad always joked that it looks like they designed it based on big tractor trailers, so little kids (inside adult bodies) could feel like they are driving a big rig. It takes some tough self-examination to figure out if a childhood "dream" is just a manifestation of marketing.
What you've described were some rationalizations for an unnecessary purchase, such as it being a dream you've always had, more DIY projects with a truck, etc. But you have some false dichotomies going on. You can sell your newer vehicle without replacing it with a truck. You can resume DIY projects without a truck. (I drive a hatchback - I bring home 8' pieces of wood when I need to.) You can also get yourself in a better financial position, make sure you have a place to really wrench on your truck, and then get an old diesel truck to wrench on. (I'm still feeling really old, hearing that Dodge RAM pickups from the 90s are "old.")
If you can sell your newer car privately, and buy an older used hatchback privately, you can minimize transaction costs and loss from bad deals (trade-ins at dealerships are bad deals.) You can probably also reduce your monthly insurance bill, maintain good gas mileage and move yourself towards much better financial picture. This doesn't mean giving up your dream, or any and all fun in the world. It just means you set priorities, you optimize your life to achieve a broader spectrum of goals that align with the values you're building, and when you finally do give in to the "fun" desires, you do it quite consciously and without the doubts that (correctly) led you to asking a forum of wizened old frugal strangers what to do.