I am 5 feet with a curvy figure too so I get how a handbag can kind of emphasize that. I think the only time you should ever worry about it is if the bag is literally the same size as your torso. For me I tend not to have this problem since my torso is actually long and my legs are why I'm short. But in the end it's up to what you like and if you love the bag then go for it!
Yes, for sure. Why not?
Ofc . it will look great ! Don't worry