1986 Toyota MR2 Car Stalls when in neutral

FYI my car also burns oil. within the past 3 months my car has been stalling at every stop light, every time it is in neutral. I have to re-start the car and keep my foot on the gas to keep it from dying. At first this was happening only when the car has been driving for over a half hour. About 2 months ago I had to pass someone on the highway that was having car troubles and slowing down, so I went into the next lane and tried to excelerate past him because there was fast moving traffic approaching me from behind, while trying to excelerate I was in 5th gear going 35-40mph. After this incident it got worse. Soon after that I realized that the more electronics I had turned on the the car the more likely it would stall (or stall faster). Now about 4 weeks ago after a 45minute trip to somewhere, mostly highway, the alternator broke and was no longer charging the battery (charge light came on the dash). I drove back on the battery, stalling every time it was not in gear. Today I got the alternator replaced and it is still stalling when in neutral. And how much of the electronics are on still affect how fast the car stalls.

I have tried to raise the idle a little bit but it still stalls.

just another FYI: the stalling isn't so bad that I cant shift gears without it stalling, so I mainly stall when at lights or stop signs.

So my question is, why is it stalling? Is my car damaged?
Thank you for any help you can provide.