yeah that's rediculously high. i'd laugh at them and then show them a late model restoration catalog where you can get that kit BRAND SPANKING NEW from a reputable company for cheaper than that.
sure, it doesn't come with spindles and hubs, but you can pick those up decently cheap from any NORMAL priced salvage yard and you'd still have brand new everything else, and you'd still only be spending maybe $50 more than what they want for it.