Ignition switch failures are common in 2ndGens...  I think it all depends on how much your riding, starting/stopping, and how many accessories your running.  I'd go ahead and do the by-pass just because.  If that cures the problem, then you're good to go.  Then start checking connections, and wiggling wires if it still persists.  Electrical gremlins are a tough critter to wrestle with....