rotary phone

Phones such as you describe are always readily available on eBay. I like the art-deco bakelite Automatic Electric #50, myself, but that may be older than you have in mind.

Waggling a hand over the hookswitch to dial numbers despite a locked or missing dial: Yep. There's a knack to it.

Extra charge for touch-tone service: Yep. Many phone companies still charge it despite it costing them more to provide compatibility with "pulse" (rotary) dialing. Yet another money grab.