The ignition switch can cause odd electrical problems, but it does not sound like the cause to me. What exactly do you mean when you say it does't work? Do the gauges show the wrong readings, do they show nothing at all, are the lights burned out/faded?
If the cluster is in fact bad, you can purchase a used replacement for way less than $3000, and you can DIY the install, it is very easy if you also replace the housing.
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However, be aware with used replacement clusters that there are certain restrictions that dictate if the cluster can be reprogrammed with the cars correct mileage. I believe they can only set any milage if the odometer has less than 65 miles on it, or program the mileage to be higher than it currently is. Hopefully, someone who knows more about the PIWIS can chime in.