Just to close the thread... I realized a couple of days later, when BOOM my steering lock suddenly started functioning again - which would be impossible, had I ground the lock pin down properly - that I hadn't been aggressive enough with the Dremel.

Hit it again today with a fresh grinder bit, and the lock assembly popped free eventually. Still not a fun job to change the lock assembly if you have large hands, but it's done. Electrical switch also replaced.

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Mac
2002 e320 4matic estate│1985 300d│1980 300td
Previous: 1979 & 1982 & 1983 300sd │ 1982 240d

“Let's take a drive into the middle of nowhere with a packet of Marlboro lights and talk about our lives.” ― Joseph Heller, Catch-22