The key will only come out in the "off" position. I had a similar experience. I used some small pointed circlip pliers to turn the key into the off position. I then used two very small pointed needle files to grip on the remaining part of the key to pull it out. It was fiddly and took about 10 minutes.
ChicksFan, January 2010
see if you can lock a small vice grips on any part of the key , and pull it out, ,or try a very small screwdriver into the igniton, and try lift the key , to get a grip on it with the vice grips, worth a try ,