Moral to the story - big name bodyshops will plunder the uninformed.
I think this is true.
That said, there's also some element of "you get what you pay for". I had a bumper sprayed by a small shop on the cheap. It looked great for a couple months, and then started flaking off big time.
The cheapskates didn't bother to prime the bumper! They just sprayed it!
I got another bumper resprayed to fix some cosmetic damage, this time on the recommendation of a guy who ran a small used car lot (not your usual sleaze ball... a step or two up from him). Great work, less money, and AFAIK it still looks good (I've since sold the car, but my parents see it around from time to time).
Long story short, talk to people that have used the shop before. Sounds like you've got a trustworthy recommendation, so I think you can sleep pretty soundly.