Airbag replacement necessary?

In the glovebox of my 89 300TE there is a MB sticker suggesting airbag replacement in 1999. This probably means that the airbag in my 86 300E is far overdue! Is this a typical and necessary service? I know it would be pricey....

On the topic of airbags/steering wheels...
can the steering wheels of older 124s (ie 86) be exchanged with one of the newer, and much smaller ones? It's probably a strange request, but I wear an artificial leg and during tight maneuvers at speed I occasionally have a clearance problem. I know smaller wheels are available on the aftermarket but I'm hesitant to lose the airbag function.

I know this is getting lengthy... the SRS light flashes with wheel movement in the 86. I suppose this is a bent contact ring - would a new(er) wheel solve this problem too?

Thanks for the expert advice.