Not to throw you a curve ball (hey, it's almost baseball seaon, right?) but have you considered this as a DIY? MB brakes are pretty straightforward and you can pick up the parts online for very good prices. If not no big deal, but you're right, you pay a premium for living in Eden.
I have an E but the brake parts are not that much dearer, for both axle pad sets and rear rotors I was quoted $975 from a dealer here in the bay area (they were doing some warranty work and included a "free" safety inspection). Needless to say I passed, spent a few hours in the driveway one day doing it myself.
I think the $370 price sounds pretty good for parts and labor; I have a co-worker with a 202 who had his done at a local indie, all four rotors and both axle pad sets I think he paid $700 or thereabouts. I'd guess that our BA prices are similar to what you'd see there.
FWIW, I put cross-drilled rotors on my car solely because my wheels are open enough to show them off (and I got a smokin' price on them...). MB overengineers brakes, so drilled rotors are just overkill (slotted rotors will accelerate pad wear). Moreover, drilled rotors are not as durable as solid/vented and are more prone to cracking and breaking.
If you're bothered by brake dust there are lots of aftermarket pad alternatives such as EBC, Axxis deluxe plus, Akebono ceramics (these are a harder compound and will accelerate rotor wear if that is a concern). Of course you pay a bit more for these, too.
Anyway, just a few more things to consider.
Take care and enjoy the ride,