I paid $375 for OEM wires, cap, and rotor for my 300E a couple years ago, so you didn't get raped too badly on the parts, but the labor seems excessive.
I'd certainly never go back!
I've heard of a local shop that charges 2.5x LIST for parts, the owner "wasn't making enough money" at the regular list. For reasons I don't what to understand, people keep him busy......
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!