Jim,
Onan knew of this problem a while ago. I don't know if there was ever any recall or any notice of any kind sent out but, for some, it happened while still under warranty. For me, on our '04 Itasca Horizon 36GD with the C-7 330 CAT and 7.5QD diesel gen, it lost one magnet and some minor damage to the stator. In the pictures below you'll see what it looks like when it decides to grenade. I had other issues for which was the reason I tore mine down for repair.
I got real lucky because at the time of tear down, I found an 8,000 watt rotor, in perfect condition on ebay for way less than half the price of a new one. When one or more of those magnets decides to go into outer space via centrifugal force, it's not a pretty picture. It looks like the insides of your generator grew "Hair" (as in little fuzzy dark gray stuff stuck to everything that's metallic inside that case. I'd say that the preliminary estimate is fairly close. It quite possibly will go up as they get in there and find more damage. You'll just have to wait and see. Sorry for your issues, while this is not an every day thing with the 7.5, it's happened to many. I've coached a few who wanted to do the tear down themselves. Good luck.
Scott
Scott and Karla SDFD RETIRED2004 Itasca Horizon, 36GD Slate Blue 330 CAT
2011 GMC Sierra 1500 Ext Cab 4x4 Toad
2008 Caliente Red LVL II GL 1800 Goldwing KI60ND