I have a genetic dwarf peach tree. I think it is about 20 years old and only 5 feet high. It grows a few inches per year. So I think your height is fine. I haven't pruned mine. The nursery where I bought it said it didn't need it. I asked them because I couldn't figure out how to prune it.

I have a dwarf panamint nectarine on citation that did not grow for the first three years. The first year I had it the nectarine even died back. The second year it grew to the size I bought it. The third year it did not grow. This year it tripled in size. I do not know what caused it to grow this year. I am glad I did not take it out because it now looks very healthy. I think some nectarines can have trouble on citation?

Looks like thrip damage on fruit. Fruit will be edible but scarred. Sometimes the clear liquid is pectin coming out, fruit was damaged by something (could be a bug entering, animal pecking, environmental)

Thanks for the info, guys. I just looked up the thrip thing and it makes sense. As you can see, there are lots of dry weeds near the tree. And we were mowing around there regularly in the spring. This is a real bummer. I was excited about seeing fruit for the first time. So it seems there's really nothing I can do at this point and just try to prevent it next year?