My car has similar numbers although they changed for the worse more slowly. $1800 is the price I was quoted. So your first quote is in the ballpark.
I think your choice is an easy one. I don't see how the second shop that can possibly do all the work and replace the parts on your list for a couple of thousand more than the pad job alone.
For example, when the shop goes in to change the pads, they should inspect the variocam solenoids and the lifters. Changing out the solenoids will add $400 to $500 to the bill. The lifters are another story. If they show wear, its a ton of bucks to buy a complete set and replace them I think the parts alone cost about $1200. The same shop which quoted me $1900 for the pads told me new lifters would add about $3000 parts and labor to the bill.
I'm positive I would NOT change out the IMSB since your put in a dual row one not to long ago.
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