So if electrical is looking most likely, the 3th and 4th gear thing is an indication of load. In 1st and 2nd we can rev quite high, but can't put a sustained load on the engine for more than a second or two. In the higher gears we can. We could putt around town at 1/4 throttle in 3rd and 4th with no symptoms, but a long hill or out on the highway we need more throttle and put a sustained load on the engine. That load is where the spark needs to be stronger (coils, condenser, points, cap, rotor, wires) plus with load the vacuum is higher asking the dizzy to advance the timing (or if we have one of those awful 009's the weights cause the points to advance mechanically). So folks are right that if one or more of those things is bad it will cause things to break up and/or stall.
As for the mechanical tach thing, what folks generally mean with that term is that the tach is driven directly off the crank by a cable. Not at all common on a rear engined car of any kind and never seen on a Volkswagen bug after 1960 if ever. Our tachs are driven by an electric signal from the distributor, even though they have an actual mechanical needle. You'll note one of the smaller spade connectors on the coil has two wires coming off of it. One of those goes to the tach. If you pull off the tach wire from that side of the coil the car will run fine but the tach will not register RPMs. That's an easy way to test the bad tach theory, pull the tach wire and drive it to where it fails, if it doesn't fail there's your sign. I wouldn't go there first, though. It's way more likely to be one of the other things, it's easy to swap them out and none of them is that expensive. Personally I'd start with the coil, points, and condenser. Then move to spark plug wires, cap and rotor (and while there look at the plugs).
Scratch that. I'd start at the beginning and get all the new ignition parts handy, and in the morngin after coffee I'd do a complete tune up from scratch. I'd adjust the valves, put in new condenser, points, cap rotor, and plugs. Then check the static timing. Fire it up, warm it up, and check carb balance and idle mixture. Then test drive. If it still did it, then I'd replace the plug wires. If it still did it I'd try disconnecting the tach. If it STILL did it I'd try replacing the distributor. If it STILL did it I'd rebuild the carbs. If it was still doing it I'd convert to an ECU to control fuel and spark, or drive the Prius to a liquor store...