Its not TOOOOO bad. Yes its a common place for leaks to start. Note that the torque on the bolts is not very much. They're only M10s. It can be replaced relatively easily ... at least I think so, but I may have a skewed opinion on the word "easy".
As for the oil light, the oil pressure light will not come on based on oil level. Only the oil level light will come on (its actually a message not a light) if the oil is low enough. Your dipstick is showing correctly if the dipstick is fully in the tube and the tube is fully in the oil pan.