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Your indy's price (1200 pounds) for a LN retrofit is reasonable if that is the only work done. The 1200 breaks down to roughly 460 pounds in parts and 740 pounds in labor.
A clutch, pressure plate, and throwout bearing costs about 375 pounds VAT included. Labor is roughly two hours less than the hours necessary for the LN bearing replacement. I don't know what shops in your area charge for labor, but I'd guess the labor associated with a clutch job is about 700 pounds using the LN bearing job as a reference. So, something is off. There's no way a shop can profit by replacing the clutch, pressure plate, and throwout bearing at $480 pounds out the door.
I do agree with you that replacing the IMS bearing doesn't make sense if you're willing to walk away from the car if the engine implodes. On the other hand, if you plan to keep the car for another 50K to 100K, then you're looking at something like a 5% chance of catastrophic failure by doing nothing (a guesstimate on a 112K car) versus almost no chance of failure after installing a dual row LN bearing.
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