Yeah, when you can buy a body and lens in great condition for less than the price of a CLA, you know it's too much. If he's doing a complete tear down and rebuild and fine tuning everything, I could see why he'd charge so much. It's a lot of work. But that's the reason why camera repair shops are dying off. The depressed prices on the used market and availability of quality examples are just too stiff of competition.
The other day I bought a used camera and it turned out to have a broken electronic shutter. I was going to repair it myself (because I'm fairly good with electronics), but I could buy another working example of the same camera for less than the cost of the one part I needed to repair the old one! And it wasn't even a particularly expensive part (though the shipping wasn't cheap and there was a minimum order of 10). So even with free labor, I still couldn't beat the price of just replacing it! Of course, not every camera on the used market is like this. Some are still worth having repaired. But all too often, just buying another working example in excellent condition is cheaper in the long run (especially if the previous owner has kept up the maintenance). Plus, it gives you a backup body for the tech to pull from in case a part breaks that can't be replaced.