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Hag just costs you an eye. You do get a small bonus to intimidation (along with some debuffs to other things), and mostly that is intended to be a negative consequence.
As to why you can't do both, well, that's the way they coded it.
Maybe Volo's eye only works if you still have a normal eye. Volo never does tell you how it works, after all.
Although, the hag doesn't actually give you anything because she complains the magic too advanced even for her to deal with.
He hung out at my camp the entire game* in my first go because I was very much "Uh.. no" when he pulled out the giant needle to cure me blind me
(*he briefly left in act 3 to do what he needed to do in the city before returning)
With the Hag, your character gets a permanent debuff on sight-specific checks, meaning your character can't see with the Hag's Eye.
Trying to do both, your character would end up with a permanent debuff to sight-related checks due to having one working eye while being able to see invisible things with the other eye.
The Hag's contract is the "avatar" carrying the eye. Volo won't be able to remove it. As long as she's alive, the contract remains. The contracts regarding her home become void when it's no longer her home, but the eye contract extends to the player character alone without the geofencing.
If your character has Volo for Act III, the offer's no longer available even if the Hag's truly gone by that time.