I'm guessing on average the job should be around $300-$400 for a rebuild kit and labor at a 4x4 shop.
Sounds like dsus4's Jeep is his DD and might just explode it driving it down here from KC. I'm all for suggesting a vendor you're familiar with, but he didn't ask where to take it, just if he was being quoted an exorbatant price by the dealer. As a rule of thumb, the dealership will almost always be higher than any other independent shop.
Dsus4, get a phone book out and start calling local shops in your area and tell them what the dealer told you was wrong and see what it would cost in your area.
Good luck,
Keith