Wooow. That's nuts. I'd definitely be pissed after that. My expectations of dealer shops are definitely low, but not THAT low. If you don't get some money back on labor cost at this point I'd be surprised.
In the future I'd look for a different non-dealer shop or even reach out to the local Subaru community, which is healthy in that area. I guarantee there's a knowledgeable gearhead nearby who would do that swap for you for the cost of beer and pizza. It's a pretty simple job.
'08 XTi, AWD of Awesome