I tried to look up what DB_BARE means and I think it means I'm still a fill node (through bitcoin core) and everything is validated fully but some hash information is not stored making it some searches from Armory less rich.
It means it does not maintain the dataset to resolve arbitrary tx hashes. On the GUI side that means you can't input tx nor fee of incoming transactions (people paying you). This is the state 0.94 was in.
Can I just keep running like this?
Well yes and no. You can keep on using this DB type but due to a mess up on my end, you have to specify the --db-type on each run. I fixed that issue but there's no build out with it yet. You're not supposed to be able to swap types once a DB is instantiated, but again, I messed up the check.
If you don't specify it, it will corrupt the DB on the next run. You can use armoryqt.conf to force that arg for now. Once the fix goes into the next build, you won't have to worry about the arg after bootstrapping.
Considering the difficulty I had with getting this to run does that mean relatively soon I won't be able to run Armory online on this computer or shouldn't I worry about that?
I can't tell. Clearly there is an issue that only exists with slow/old machines, since I never run into it, and all cases I can remember like yours are on old/weak machines. For now there seems to be a critical point at which a machine is too aged/weak and can't bootstrap the DB off of defaults. Until the point I figure out what's going on, you are stuck with using custom settings. What you ran is basically the fail safe setting.
I don't think the issue is related to block size but rather block load. Smaller blocks with lighter transactions (up around block #350k) are easy enough to parse. It's the recent stuff that's grinding some machines to a halt. Seeing you eventually got past it, I'm gonna guess your machine can keep on going.
When I close the client I see the following errors in the log (and it takes a while to close the client meanwhile it's not responding). Is that all ok?
False positives. A bunch of debug verbose I left there cause people on OSX are complaining about slow shutdowns. This helps me figure out what's going on. Ignore on anything but OSX.