Motor and controller failed at 2 yrs./5000 miles; $500 in labor to replace

[BKRacer-26]

I've had my Radrunner Plus for two years and 5000 miles.  Two weeks ago the motor started making funny noises, then before I could take it in to a shop, it failed. 

The shop is quoting me $1507 for repairs (see attachment)!  That's almost the price of a new Radrunner Plus!  Of special note is the $250 in labor alone for installing the controller...is installing the controller really that complicated?  Or are these people ripping me off?

Second question: Is it normal for an e-bike to be ready for the junkyard after only 5000 miles?  It's not like I've been abusing it:
1. I've used it solely for commuting to work
2. Commute is pan flat except for one underpass where I descend about 15 feet, then ascend.
3. My total load is about 260 lbs.
4. Weather is mild year-round (central California coast)
5. I always ride with power-assist 5 but never use the throttle except for the first 2-3 seconds coming out of a stop.
6. I never ride in the rain or leave the bike out in the rain

If I have to junk it I'm definitely never buying a Radpower product again.