2001 Chevy Prizm

I have had this 2001 Prizm for 4 years. For the last 3 years, I have noticed that it burns oil. The problem has gotten progressively worse, and it is now burning about 1 quart for every 200 miles driven! The check engine light has been on for approximately the last year(ish). I took it to AutoZone and they said it could just be a bad sensor.

TODAY, the check engine light began blinking while driving down the highway. The acceleration slowed significantly and I couldn't really get it to go faster than about 60mph, even trying to accelerate hard. Once off the highway, while doing some city driving the car was still difficult to accelerate and started "chugging" especially as I was going uphill. I have also noticed that the gas mileage has dropped significantly lately.

I have been doing a lot more highway driving lately due to a 25+ mile commute (1 way) and have heard that these cars tend to burn more oil with highway driving. I'm afraid my car is dead. I knew it was going that way.

Is there anything I can do, or is my engine shot?