Albertporter,
I have been in the jewelry industry for over 30 years, and I also happen to own an Omega Seamaster GMT (stainless steel). Several years ago, because of corporate reorganization, they nearly destroyed their reputation because of poor customer service in regard to repairs. That problem has been addressed now.
I don't know where you live, but I recommend that you find a private watchmaker who has a good reputation, and allow him to do the work for you. It is absolutely a myth that only the facotry can do excellent repairs and overhauls. A good place to start is the jewelry district in the nearest large city. Ask around for referrals. If that is not possible, do an internet seach for your area.
Rolex is a different story. They are absolute control freaks, and even though their movements are quite conventional,(think Honda) they manage to get a majority of their out of warranty work sent to them because they will only release parts to dealers, and exclude most (but not all) private watchmakers.
I believe, based on my experience that you were correct to decline the estimate you received. I think that you should be able to have the watch overhauled for $600.00 or thereabouts. Check araound. Also, remember that bracelet refinishing is an extra charge. Also, remember that the jeweler is the middleman, and they are tacking on a healthy profit margin to what Omega is actually charging them. I say that assuming that you went through a jeweler instead of contacting Omega directly. In any case, my advice would still be the same.
