$100+ an hour adds up quickly; machine work is not cheap, either.
i wouldn't say 7K is severely out of line given the current cost of things and landscape. a reman long block runs 2~25 easy so there's about a full 1/3 of that right out of the gate.
There are less expensive routes to take even now. I told the old fella to drop a Magnum into the car :) But ultimately I sold him a 73 318 ready to go engine. No guarantees though it should last him till he's done with the car though.