Sounds like your problem is with the placement/fitment of the combo switch and accompanying cover plate and the contacts for the wheel slip rings. Remember there are two sets of contacts, one for the horn the other for the air bag. Something askew at the junction of the wheel to column could very easily give the symptoms you describe.
Might just have to pull the wheel again and gut the column, taking extra care upon reassembly. Everything should fit together without and binding or pressure involved.
'73 280SEL 4.5 (9/72)- RIP
Only 8,173 units built from 5/71 thru 11/72
'02 CLK320 Cabriolet - wifey's mid-life crisis
2012 VW Jetta Sportwagon TDI...at least its a diesel
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