firstly - toyota cannt needs to brush up on their language skills, nozzel? diesal tonic??
At this mileage the best practice is to replace the timing belt, tension rollers, both cam and crank seals and also water pump, retime correctly, replace valve seals too while adjusting tappet clearances - once cam is out the valve seals are a 20 minute job with a saddle type tool to press the valves. No need to open the head.
The very very fishy bit of this estimate is that they have not mentioned any parts cost in valve clearance adjustment, that means the tappet shims are "free of charge". - Not possible.
Ask them how would they go about setting the clearances, do they replace the shims? grind the shims?... While at it, ask them to call out their head diesel mechanic and ask him how he would go about setting the injection timing on the pump once a new belt is installed.