Yes, I realize it's a little scary but that's the move you need to make. The top is the part you will save. The bottom is not likely to branch afterwards, but you can keep it just to see. There is a way to make the cut so that there's a higher chance of branching on the stump, but it's not easy. You would need to make the cut in such a way that a few leaves are left on the stump, meaning that the cut would have to go through the rosette itself. That's not easy with such a compact rosette, but it could in theory be done. I'd stick with a straightforward decapitation (Marie Antoinette style) to keep it simple.
The main risk in doing this is that the cutting will rot before it has a chance to root. You don't want it sitting on wet soil before it has had some time to heal (thus the wait before you water for the first time, and the caution in watering right after that). You need to keep an eye on things to see how they are progressing, and that will tell you when the roots are emerging and doing their work. Once the cutting has roots, the risk of rot goes way down, because the roots will be taking water out of the soil. Strong light is very important during this process. The more natural light, the better indoors.
A few years is a pretty good lifespan for this plant, they don't live forever.
