Kathy Garver has stated in the interviews on the DVD sets (Which I own thankfully), that the series was still viable and it wasn't a significant drop in the ratings. The year 1971, a new president took over CBS and purged all the bucolic rural series (Green Acres, Mayberry RFD, Hee Haw, ETC).
"Family Affair" wasn't bucolic but was considered "old fashioned" and with the new TV trend that year going to more sophisticated, more realistic fare ("All in the Family", Mary Tyler Moore", "Sanford and Son"), "Family Affair" was cancelled along with "My Three Sons".
Another reason was that by year 5 clearly Anissa Jones and Johnnie WHitaker were no longer cute and adorable. Anissa, particularly looked as if she just hated being there in many episodes during the last season.
So, what do the producers resort to when a series starts showing its age? A recourse that never works. Bringing in a new character: Emily, annoyingly played by Nancy Walker. That didn't help just like "Oliver" didn't help in "Brady Bunch", "Ricky" in "Partridge Family", "Dodie" on "My Three Sons" or James and Cassandra in "Little House". In the case of "Family Affair", bringing Nancy Walker on was the final nail in the coffin to coin a time worn cliche'.
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