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VMWare Workstation is a Type 2 hypervisor and the performance is horrible.
I can't find any benchmarks comparing workstation to ESXi. But for work we spend most of our time in type 2 hypervisors and performance is just fine. Just make sure you're not using the Windows Hypervisor Platform because that does have a huge performance penalty. Considering OP uses an old i5 I'm sure a modern CPU would handle the load just fine.
But importantly workstation has something ESXi doesn't, 3D Acceleration. And if you're doing anything graphical it makes a huge difference.
KVM/libvirt (type 1) blows VMWare Workstation out of the water, performance-wise (and license cost-wise since it's FOSS). I don't have benchmarks at hand, but expect something in the order of 20% I/O-wise, 10% CPU-wise, which quickly adds up. RAM usage impact should be negligible. Of course it depends on the workload, CPU-bound workloads will suffer less, but a lot of workloads are I/O-bound (databases for example).
VMWare reportedly has the best 3D acceleration support, yes. But it doesn't support hardware passthrough (which type 1 hypervisors do).
Of course if you're in Windows-land you don't have much choice (is Hyper-V slower than Workstation? Shouldn't be - but hey it's a microsoft product :) )