i dont think the fan switch has been addressed so... Some heat is normal, a shorting motor can cause excessive heat in all associated wiring including the switch, corrosion/burns in switch can cause high resistance also creating heat. There is a problem, just need to check and see if wires are hot or if it is just in the switch. hope i helped some.

And oil consumption, many possiable causes. most likely two i think would be stuck rings which is common with age and overheating. Try half a quart of atf in the oil that can help free things up but might also dislodge sludge around seals so watch out for leaks. also there is a oil seperator inbetween intake and valve cover, if it gets clogged could just be bypassing oil right into the intake which could also cause slow return to idle issues.