Automatic Transmission Output Shaft Seal

Our Prius is just about to hit the 150,000 milestone. We were given the car by my wife's parents a year or so ago and because my father in-law kept suggesting to check the VIN for a recall I did, and there was one ("Safety Recall C0T - 2004 to certain 2009 Model Year Prius Vehicles Steering Intermediate Extension Shaft"). I called up Toyota to confirm that this affected our car and they indicated that it did, so I thought, ok I'll take it in. And so I did take it in to my local Toyota dealership.

Of course, they offered to also do a "multipoint inspection," which sounds like a great idea. The results were all good, except, I was told, the transmission fluid needed to be changed. I thought, ok, $130? Let's do it. That was the plan and then I was called back two minutes later by the same mechanic manager who said, his mistake, the fluid was fine. He wasn't reading the results properly. The problem is that they discovered a leak. The "Automatic Transmission Output Shaft Seal" needs to be replaced. I thought, ok, what's that going to cost? $720. That, of course, sounded like quite an upsell. I asked if the car was safe to drive and he said yes and that it didn't need to be done right away but that we should "keep an eye on it." He also said that I wouldn't necessarily see any leak under the car because the fluid would drop onto other parts and would disperse and wouldn't be easy to see. Honestly, I am pretty sure he himself didn't even look at the car. He wasn't sure how long the car would last without this being done but he said generally for the long-term benefit to the car it needed to be done. I said, "I'll need to think about that" and went and picked up the car.

I've googled the part and it appears that OEM versions of the part run about $10. I think he mentioned that two seals needed to be replaced. So, assuming Toyota has a, ahem, healthy markup for parts, lets say these things cost $50 each. Is $600+ fair for labor?

It doesn't help that the guy that called me wasn't actually the mechanic that worked on the car but he was more of a front office "service manager" or something like that. There were several of these guys with cubicles facing out to the area where folks dropped off their cars for repair and there were, from what i could gather, teams of mechanics around back where the actual work was being done.

I'm kind of a "noob" when it comes to cars so any insight offered here would be greatly appreciated.

I came across a Consumer Reports article warning of these exact same kind of scenarios: you take your car in for a recall repair, they offer a "multipoint inspection" and wham, all of a sudden your perfectly running car needs hundreds if not thousands for dollars of repair. They make it sound as if some of these recalls are nothing more than unethical marketing schemes to push new car sales or expensive repairs.

I would have linked the consumer reports article but because my account on PriusChat is brand new the system doesn't allow that. You can google "consumer reports be wary of free inspection" and it's the top hit for me. The article is from Sept 2016.