3k-5k miles if you ask me. Yea it may seem like overdone but that's the cost of caring for your car. Remember oil is running throughout your engine and over time dirt/debris gets in there..
Yes, and also you have an oil filter if you have a newer car. I believe by the 1940s, oil filters were fairly standard.
The core oil does not "wear out," but it can be degraded through a variety of means.
If the engine has high pressure gearing (typical for motorcycle transmissions, possibly cam gears on some engines, etc), this can physically shear down the oil to a lighter weight. It is common for motorcycles to shear oil down to a far lighter viscosity during operation. This is not a common form of oil failure in a car or truck engine, though.
The more common death of oil is the wearing out of additive packages designed to buffer acids and other assorted chemicals that are hostile to engine internals. Oil contains a range of things added in that do "run out" - not just the buffers, but also things like zinc that are designed as anti-wear additives (diesel oils have far more zinc and such, which is good on older engine designs with flat tappets and associated, I run diesel oil in almost all my engines except for the car).
Getting dirty is a problem, but the oil filter tends to solve that until the filter is substantially clogged and bypassing - at which point, you are likely well beyond oil change intervals to start with, and may have sludging problems (this tends engine specific, not a general purpose problem). If you have a vehicle doing high miles, a "bypass oil filter" system can help here substantially: This is a system that diverts a portion of the high pressure oil off the pump (5-10% typically, not enough to interfere with lubrication as this much is typically bypassed by the pressure regulator anyway) though a far finer filter than the normal "full flow" filter that all oil passes through on the way to the bearings. By not needing to filter the full oil flow, the bypass filter can be a far finer filtration media (imagine a roll of toilet paper instead of the normal filter media) and will, over time, do a far finer filtration of the oil than the normal filter can manage.
Combine a bypass oil system with regular oil analysis (Blackstone Labs or similar), and you can safely run far higher miles on an oil change than manufacturer specifications, while still maintaining proper oil behavior and additives (they will, on occasion, recommend things like a "half oil change" where you drain a few quarts out, put a few new ones in, etc). This is most useful for things like high mileage trucks that are used for a lot of highway miles.
For "a few thousand miles a year," simply change the oil annually and call it good.