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The part you've given the link to is the ignition cylinder assembly without the switch.
Your photo below:

Point 1: If your key turns nicely there's no need to replace the cylinder. Furthermore the whole assembly (as in your photo) is held by "tamper-proof" bolts (its hex head broken off for security). Only need to replace the switch.
Point 2: Yes Volvo can replace the cylinder (I meant the tumbler into which the key goes into) only. You'd have to provide the VIN number to them. The replacement part would come as cylinder only and you'd have to figure out how to take the old cylinder out and put new one in. Perhaps you could post this topic to the board as I haven't done this.
Replacement cylinder (tumbler) as in photo below:

To get to the switch (photo below) you'd have to dismantle the large plastic cover beneath the steering. Access to the screws holding the switch might be a bit awkward but you'll get to it slowly. The switch's electrical plug just need to be pulled off (towards front of car). Assembly is opposite of dismantling. Should take 30 mins or less.

The ignition cylinder assembly PLUS switch (this from 200 series but you get the idea):

Hope these helps,
Amarin.
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