The price sounds about right though I'd want to confirm you're getting a new TEHCM from GM in that price. Otherwise, it may be a bit high. The warranty isn't too bad at all for an independent shop...You have to remember, General Motors is a multi-billion dollar company, the source company for all of these transmissions and has warranty reserve capital that would blow your mind so if an independent repair shop (a microscopic entity by comparison) is able to provide a 1-2 year warranty, that's very good provided they stand behind it. Another positive sign is that they don't do flat rate/'fix-it' type work and I'm the same way with these units...If I'm getting my grubby mitts on it, it's coming all apart and getting overhauled per page one of the thread (at minimum).
If possible, I'd want to know what they will be doing to the unit and what parts will be installed...Bump that up against the list of parts on page 1 to see if you have apples to apples. I'd also be curious as to what friction module they would be using...Given the name of the build, perhaps either Raybestos Stage One frictions, GPZ or Alto HE or Reds? Billet torque converter is a nice upgrade, esp for towing/hauling in the summer time as that's when heat will cause conventional tc covers to flex/warp if stressed enough...