Toyota Repair: oil consumption, toyota corolla ve, consumption rate

Question
2000 Toyota Corolla VE Sedan 4D,4-Cyl 1.8 Liter Engine, Automatic Transmission; 69000 miles, One owner only (Myself). All suggested maintenance have been performeby the dealer since car was purchased. (no missed oil changes)
When the 60000 miles maintenance was done by the dealer's technician I was hearing a noise, but on a road test with the technician he did not detect anything. ±4000 miles after that, the noise resurfaced. Upon checking the oil level found a high oil consumption although no leaks were observed. During recent oil change again noted a low level of oil with the persistent noise. Still no leaks were observed. Upon consulting with mechanic he suggests a complete engine overhaul.  

Do you agree with diagnosis and remedy?  

Answer
These engines normally last a lot longer than 69,000 miles before needing an overhaul, in this case I would suggest doing an oil consumption test to see just how much oil the engine uses over about 500 miles. Fill the oil level exactly to the full mark on the dipstick, drive the car for 500 miles, check the oil level and if below the full mark add oil until it is exactly on the full mark, how much oil is added will be the consumption rate, toyota consider one quart of oil usage in 1,000 miles within normal limits so if it uses 1/2 quart in 500 miles it is within the limit and the engine noise is not due to oil consumption and by the way, the engine would have to be almost completely out of oil to cause a noise because as long as the oil pump can pick up oil in the oil pan there will be oil pressure, this means that a low oil level is not necessarily a cause of engine noise, at this time I do not agree that the engine needs an overhaul based on the technicians explanation.