The second dealer warrantied it and didn't charge me any labor, including for the additional valve work. They charged me about $500 for machine shop outsourcing and about $600 for parts.
Parts included 6 each intake and exhaust valve guides and one valve stem. There are no valve seals listed, but I thought those are done as part of the machining? I confess ignorance when it gets to these intricate engine guts.
Overall I believe the second dealer was trying to treat me right and keep my cost as low as possible. This of course after we had some frank discussion about the original $3200 total estimate.

My guess is they didn't do much better than break even and were happy to see my car leave.
I will still be talking to the first dealer for some compensation for my additional out of pocket expenses and time. So far they are the only ones getting off easy... they got full (high) price for a quickie botched job.