This is what I would do too; if the boxes are alreay back to back, you don't have a whole lot of easier options. You could also try to move one switch lower or higher (whichever direction the wire length will allow), but this is a lot of patch work.
neuro - it sounds like there are two boxes back to back on opposite sides of the wall... so there isn't much depth to work with.
As far as getting the old box out - what I've done in the past (after reading the article that Dan linked above) - is expand the hole to the size of a 2-gang old work box, then you have plenty of room to pry the old box out and pull it out of the hole as you work the wires out of the box.
I just crammed a pry bar next to the box and worked it off the stud - since I had plenty of room to the side to wiggle/work it out... although the sawzall idea isn't bad.