You can sharpen anything with a blade, be it steel or ceramic
http://www.ehow.com/how_2089359_sharpen-ice-auger.html
http://www.ehow.com/how_7890934_sharpen-auger-blades.html
http://www.youtube.com/watch?v=xiX6H9ZtrAs
As for that Lansky, it's cheap, fairly accurate but the recomended angles are off. The money you save would be well spent on bandaids as your going to need them.