No, that's not normal, lol. You need to spend some quality time with the old girl and do some much needed maintenance. The felt pads rubbing the points cam are there to hold grease and lube the cam as it spins. The grease on yours is all dried out and chunking off. That's the crap you found. The advance unit should be clean and oiled, not all rusty like yours. You need to service it and the advance rod that runs through the cam. The advance rod is probably dry and hanging in the advanced position. That will cause the hanging idle.
Clean and lightly grease the advance weight pivot posts. Clean and oil the springs. Lightly wipe the whole unit down with oil so it shines. In the future, a small shot of foaming chain lube on the posts and springs will keep them lubed.
The outer bushing at each end of the cam that the advance rod turns in has grooves cut into it's I.D. These are to hold a reservoir of grease and keep the rod lubed. I just serviced mine recently and re-greased the bushings. I had done it initially 5 or 6 years ago. There was still some grease left in there but I took the opportunity to refill the bushing grooves. I'll get some pics up shortly.
+1 could even be a hole in the diaphragm vacuum leaking just check everywhere including the petcock make sure its not dumping gas into the vacuum line and make sure its not sucking air into the vacuum line or into the petcock itself
