The conversion kit eliminates the points and condenser from the system. You attach the triggering mechanism to you existing coil. I just cut the wires going to the points and condenser as close to the block as I can, so they don't get caught in anything. No need to take off the flywheel and remove them. Page 6, Sec. 2 of this manual talks about the replaceable module, although I have never had to replace one after it has been installed.
Yeah, almost any shop would have a pile of good coils from all of those pushmowers that got a bent shaft, they would part with those coils for 5$ or so.