After 20 years my 87 300E was in it's first accident involving the need for paint work

. The garage door motor shorted out and closed on the roof as I was pulling out, and scraped across part of the roof leaving a small crease. Unfortunately, repairing the damage meant pulling the headliner and sunroof, and it was a 2 week project at the shop. Paint seems to be a great match - they did the entire panel between the black roof strips from windshield to rear window. However, somewhere along the line it acguired a cigarette or hot iron burn in the drivers seat and a slit in the piping that runs around the armrest. The shop is going to make it good, but I have some questions.
The car was flawless and looked like new going into the shop. Interior had no issues aside from slight fading around the door moldings. My question is, the upholstery shop wants to do a 'color melt/retexture' of the damaged areas. It is the burgundy MB Tex interior, and red does change color with time. Does anyone have any experience with the patching they describe? I know World Upholstery and others make replacement seat covers and armrest material, but recent MB tex seems a LOT less substantial than the material in my 87. I am thinking of letting them have a shot if this is an OK technique, and then if I am not happy asking for replacement of the seat and armrest material, but don't know how well the quality, color, and texture will match my 87.
Any input is welcome.