Seems reasonable to me. I think I paid right around $100 a few years back to have my Mepro's installed on a 1911. The XDm sights are TIGHT and are usually a PITA to change out.
I would look into the ameriglo pro glo front and pro operator rears. That's what I am running and love them. bright orange during the day with an almost black rear and at night it all works perfect. The two rear are smaller than the front so your concentration will immediately be directed to your front sight. Here is a make shift picture of what they look like. Search some more on google and YouTube man. Good luck.
Yeah, the XDm factory sights vary from "I'm gonna need the big hammer" to "Holy **** I'm gonna need the plasma cutter." Not something I recommend people try at home. I've literally seen some that had to be milled out. Even if you bring them to a smith, make sure they have a few XDs under their belt. Or just send your slide off to Springer Precision, he does great work and is THE guy when it comes to plastic Springfields.
As for the sights, another big +1 to the Ameriglo Hackathorns.