Old steering column was a bit rusty so I swapped whole column from spare part stash.
I still had to swap steering lock (to keep the key) but not too hard when you have whole column out of the car. Got rid of the button and have start from the key like it should. Nice.
I also enforced (as the one I had, was broken from three places) and installed the cardboard underneath steering wheel and small tray between fuse box and steering column.
One layer of fiber glass carpet and some epoxy:
Removed fresh air fan as it wasn't working, got it working on desk (just dirty and bad contacts) and put it back with new seals on air flaps: Old foam seal was literally crumbling when I touched it and there wasn't much of that left, so I removed it and used 2mm rubber plate to replace it. Seems to work, now the flaps don't leak air.
Fan box is slightly leaking between box and body, but that's something I can seal from outside of the box, nothing major.
Getting power to fan was an episode by itself: Where are the wires and which wires? Basically none was visible.
Wiring chart told me that rear window heater switch is in same +12V wire and starting from the switch I eventually found that there was a neat roll of black wire, behind dashboard. Good, +12V to the switch is here.
Also it told me that ground is connected to somewhere via a long wire and I should have loose ground wire (brown) hanging somewhere underneath the dashboard and it was, almost at fuse box so I didn't see it at first time. Another of those VW oddities: Ground wire is brown and black is used as a power wire.
Now the fan is also working and some fan is nice to have, just to defog the windshield in city traffic.
I also swapped the steering wheel as the spare part column had much better steering wheel: No cracks and uniform black colour.
Bushing swap helped a lot, it's much better to drive now. Wobbling is still there at some speeds but very mild and above 60mph basically none.
The engine is getting quite noisy though at those speeds .. I think I'm missing most of the sound insulators from engine bay and elsewhere. We'll see.
Edit: Forgot the pic link from the dash & front floor as it is now: