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Yeah, you need to adapt to it. I had the same, don't think I realised how much I was using the saddle for sitting down, even for very brief moments on downhills. Just have to learn to ride slightly differently using your legs a bit more to shift your weight around rather than through your arse.
I'd say even a 100mm modern 29er XC bike would be a lot more capable than your rigid 26" inbred.
Oh, droppers. I have one now but it feels fucking weird when the seat isn't where it's supposed to be so I've tended not to use them. I like to use the saddle/inside thigh to 'know where I'm at' so to speak. Obviously it's something to get used to but I only remember it's there when I'm already on stuff that could use a dropper and then I don't want to sit down!