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You definitely can do most of that other work yourself for *significantly* less than quoted - just takes your time...
Cracking open the engine maybe best left to a pro - I can't comment on cost - but from what I've seen, if it really does need a full rebuild that is not out of the range. Real question is does it really need the full rebuild as others have noted...
I got lucky with mine - I also bought without a PPI .. I could have gotten away without doing any work on it for a while.. I refreshed a lot just because I wanted to, not because it had to be done..
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1986 Carrera 3.2 Coupe in Grand Prix White
IG: @c.cal.porsche
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