Just for the regear, nothing else? Yes, that sound extremely high.
Don't know where you are in CO, but I just had a regear done at The Edge Automotive in Englewood for MUCH less than that, including an E-Locker. Should be about $700 for gears, $70 for bearings and such, and $1400 for labor = $2170. Edge does nothing but offroad stuff, mostly Jeeps, and has a good reputation.