No, you can't turn the key when it is jammed like that.

As to working it loose, remove the bolt and collar COMPLETELY from around the assembly so that the metal parts and move a little as you work it out of there and keep in mind you must drill the pin out, down such that it does not get caught coming out. THIS is NOT easy to do, and is why we PREACH at people to FIX THIS BEFORE IT LOCKS UP, you are going thru what so many have gone thru. Iv'e never had to drill one out, as I only do pre-emptive fixes, once they lock up, I refuse to work on them, it's just too frustrating, and you can see why I say this. The only thing that keeps it from coming out is that damn pin (and maybe clearance from the brace on the right.)

Also,
You must remove the assembly, then punch out the cover as described, then get the spring and wedge out of there. Once you do that, you can turn the key - I always drop about three drops of oil into that cavity and let it soak in before I button it all up and put it back in.