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I don't exactly when drywall was introduced although before drywall became prevalent they had switched from wood lath to a gypsum lath [strips of drywall to apply the plaster too] By the late 60's there were probably more homes being built with drywall than plaster. If you took a switch plate off and examine around the opening, you should be able to determine what the wall consists of. If you try to scratch out the diagonal crack and hit paper - you have drywall.
Because drywall is in sheets, it isn't common for it to crack anywhere but the seams but it is possible for there to be cracks elsewhere, just not common. I don't know that lack of fresh paint would cause the tape at the seams from failing although good paint does help the wall from obsorbing moisture.
Generally it's easier to repair than to replace. Is there a specfic reason that you think that area isn't repairable? Usually taping the cracks and filling or covering with joint compound as needed is all that is required.
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retired painter/contractor  avid DIYer
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