You will lose power in a few ways. First, the blow by around your rings are bleeding off compression. Second, the oil problem will foul out your spark plugs and it won't ignite the fuel as efficiently. And third, your cam and valve train are probably worn out which means your valves aren't opening as far and can't let as much fuel and air in and as much exhaust out as it should.
How much power depends mainly on your engines ability to hold the combustion inside the cylinder without it leaking out into the bottom end of your engine and it's ability to bring in air/fuel and let out exhaust. The oil won't really effect it unless if fouls out your plugs, but it makes your car look like a pile when it smokes down the road.
From the way it sounds there is nothing you can do short of a total rebuild. Anything you do will be a bandaid. If it isn't knocking I'd just replace the spark plugs, check the oil every couple hundred miles and enjoy the rest of the year unless it starts knocking. Then I'd plan a rebuild during the winter.
Rebuild kits are pretty cheap for a small block ford. I'd also recomend you get a book like HP books How to Rebuild Small-Block Ford Engines. It will be a good 20 bucks or less you have to spend. I rebuilt my first engine back in the day (460 Ford) with the help of a HP book. They put it pretty simple with lots of pictures.