Hardly believe you were 'ripped-off'
I bought my kit a few months back and it was about $200 dollar (CDN), I went to a local supplier I use so I can see the quality of the parts I am getting (full kit incl seals, made in Germany). If I order on-line I'm not sure what will show up!
On the flip side , there are many parts I would order on-line from Rock Auto and such (guess im just a little picky that way).
Labour rates at shops where I am generally range around $90-$100 an hour, 'Stealerships' closer to $125-$145.
I also believe the 1.6 hr time estimate is on the lean side (even for a shop).
I did mine myself in about 4 hrs, with the seals being the biggest PITA as I didn't have a puller.
But you have one thing I don't, a pretty substantial warranty on the labour, parts a given.
The company I work for offers Preventative Maintenance Contracts for projected failures, insurance on the work and parts costs money, so IMO. . . . I think you made out pretty good!
Cheers