Does $3000 for a replacement rear diff sound fair?

I'm not an expert at rear axles but looking on car-part.com it looks like there are 2 versions 1 with and 1 without ABS, just FYI.

That's another source if you want to see if any junkyards have any near you.
 
So while taking my TJ out on a camping trip with my boy the rear end blew up while riding down a flat road at about 40 mph. Had it towed to a local shop and they're quoting me about $3000 for a new Jasper differential, axle seals and wheel bearings. This is about 1/3 of the cost of the Jeep itself so I'm really trying to keep the cost down. Does this sound as outrageous I think it is?

I called another shop that said they'd drop in a used Dana 35 if they could find one but they haven't had any luck tracking one down locally and obviously wouldn't warranty the parts and labor if something was to happen.

Any advice from the experts on which direction you'd take?

1999 Wrangler 4.0 5spd with Dana 35 rear and 3.07 gears.
Can you be a little more specific on what “blew up” means? It would be easier to offer advice.