'05 V8 Touareg Service - Alaska

This post is a general note more or less about my experience with my NTM Touareg and our local VW Service Provider - Morrison Auto. I don't really have a question - but if anyone has comments, please feel free to share.

Two weeks ago I bought an '05 v8 Touareg with 56k on it. I also picked up the the Vehicle One (GMAC backed) Premium Insurance.

A few days ago the engine check light came on, rough idle and noticeable power loss and rough running at cruise rpm on my way to hockey. Using the forums here I figured coils and or O2 sensor. I pulled the coils and plugs, but didn't notice any corrosion and all 8 plugs looked like they should of.

I took it to our ONLY dealer (Morrison Auto) here in Anchorage. They were able to get it in the shop today. I asked them to diagnose the issues and perform the 60k service and to cut/program a second key.

The 60k service was quoted as $658 w/labor
They key was quoted as @ $200 (has to be ordered though)
and a few hours later they called with diagnosis.
The REAR O2 sensor is faulty and was quoted @ $350 w/labor
The Thermostat is sticking as was quoted @ $700 w/labor

If anyone has thoughts on the costs, please share. Shop rate here is $109 an hour. I expect the warranty will cover the sensor and stat minus deductible.
I'm okay with the 60k service (unless I hear otherwise). I do plan to match what they quoted me on the service to what the manual says just to see.

They did tell me the coils were covered by a VW TSB which has been well documented here.