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Carol; You post some good questions. Cracks in this portion of the hull may be worrisome. This is the aft (back) portion of the keel well and cracks/soft may indicate some problems. Heavy rust on the keel bolts may also indicate that it hasn't been worked on for a long time (most of these boats are ~30 years old). I rebuilt the keel cable/pulley on mine last year and it is a major job to drop the keel. I would try to find someone who is experienced with sailboats in general to have a look-see.
I have a traveler in mine, but it really is not a necessity. If you plan on sailing off the coast in the open Pacific then this small of a boat is not a good choice. I've been off the coast a couple of times in a 45' ketch and found it can be a live changing experience. The S21 is good boat for use in Puget Sound and the Islands (I sail out of Everett). It's quick and nimble and reasonably easy to sail but would be hard pressed to handle the waves and currents of open ocean.
By the way, my S21 is for sail (whoops - sale) if you might be interested I can send details or at least you can look at it as a reference. I'm moving to a larger cruising boat.
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