Yes, Driving a vehicle for any sustained period of time, Low on or Lacking oil Can cause severe engine damage, All engines can be damaged with insuffiecent lubrication as it increases friction and promotes rapid engine wear. As Long as you have added oil to the vehicle, and there is no knocking, smoking, tapping or otherwise unexpected operation, then it should be fine and may not have severe damage.
This is almost impossible to answer. It is too broad. Depending on whats wrong with the engine you might not need swapping. A rebuild is possible. But a 5S-FE engine for the 91 celica is fairly cheap for a low mile running engine. They came in a number of Toyota cars back in the 90's so there is no shortage of them. That's if you want the stock engine.. A more powerful turbo engine is available (from the celica alltrac, celica GT-4 and MR2 Turbo).. a bit more expensive with about the same amount of work.. If you need help or want further information, maybe just some questions answered i would suggest going to www.celicatech.com its a website dedicated to the Toyota celica.. And covers basically everything.
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