It's a fair bit of dismantling involved in this installation, it would probably take a beginner (ie first time installer!) up to 4 hours to do it. Even so, if the garage knows what they are doing I can't believe it would take them more than a couple of hours so to me this quote seems a rip off.
My advice - do it yourself! It isn't that complex and it's only the airbag removal that is at all tricky, you just have to unscrew a number of items in the dash and around the windscreen. Just set aside a whole day to do it and save yourself a heap of cash. In the case of a TDI there is no need for the VW dealer to ever realise that the kit has been retro fitted if you can get someone with VAGCOM to enable your ECU (which incidentally can be done before you fit the wiring), as you are fitting the factory parts. You are not tampering with the wiring of the car by fitting non VW equipment, and it is a VW approved retro-fit kit.
Just a thought, has anyone tried to get a quote from a stealer just to fit the steering column switch and do the airbag work? It could be worth even contacting a (usually more) helpful Skoda dealer and asking them to do all or part of the job for you as they may be cheaper than VW?