Sony Cybershot DSC - H1 — Exorbitant Repair Estimate By Sony Service Centre Without Analysis

Hi,
I bought Sony cybershot DSC-H1 one and a half years back from US. It served me well until a recent trip, where it developed a de-focussing problem so all I could see was very blurred pictures. I took it to the Sony Service Center in Bangalore (Indiranagar) and they told me that they would have to change the entire lens structure and it would cost me 18000 INR which is very ironic because my camera cost me 14000 INR to begin with. I asked them to explain the issue with the camera and I got an unintelligible response - "There has been a lens contamination due to moisture. The lens has developed fungus and we will have to change the lens". I do not know whether the support staff was defining his intelligence level or mine with that response but that's about the most ridiculous thing I have ever heard in my life. I, then, took the camera to another repair center which happens to be authorized service center for canon and they told me that the problem is with the motor and would cost 3200 INR to repair.
I have heard similar stories from my other friends who were advised by Sony service centers to go for costly replacements when their equipment, infact, worked perfectly fine despite not going for them.
I do not know if my camera will be repaired but my trust in Sony seems to be damaged beyond repair.

Mokshi