I think the repair cost you are being quoted is a bit steep.
I replaced my sons Passat turbo 1.9Tdi when it blew.
Exchange turbo ( which was still working perfectly 20k miles later when he sold it ) £325.
New oil feed pipe £30, oil & filter change £30.
It may be that your turbo has blown bits of the blades into the trunking & intercooler & the garage are factoring in replacing these.
I would just give them a thorough clean out & re-use if they are undamaged.
I suggest you try a few local independent garages for repair quotes.
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