2 hours in case there's multiple checks and relearns required maybe, they're just being on the safe side, if it took them even slightly over an hour, they'd probably just prefer to charge for two and get the job done properly.
$130 a hour to do that kinda stuff isn't out of the ordinary for a dealership. I usually get charged $110 for any work.
Yeah sure it's a lot of coin, but if they actually do good work and you are incapable of doing it yourself or don't have time, it's not such a bad option.
Try not to poo-poo on dealerships for wanting to run a business :P