What the hell is going on with shops?

I've been in the industry since the mid 80s in one way or another. My $.02... Is $1100 too much? Probably. But those of you who are adding the over-the-counter cost of the part and supplies, plus a couple hours are missing som things. There is the labor rate - around here it's anywhere from $65-150/hr depending on the shop. Then there's the part - it will sell for list plus 20 to 50%. The dealerships sell them to licensed shops at list minus 10%. You buy it for list from the dealer. Then there's the liability a pro shop shoulders. What happens if the guy on the web or the local Auto Zone guy is wrong? Now the shop's on the hook for it because "they replaced it and had the pan off." Nevermind the possible convertor issues that are not at all visible.
If you rolled into my shop I'd charge you an hour to verify the problem, tell you to go buy the part and a filter kit at the dealer, and then charge actual labor time to replace it along with fluids, and you'd sign a form stating customer parts - no warranty. The clock starts when I take the keys off the board, and ends when it's parked after the test drive. At $95/hr, it would probably still be a $300 bill after supplies and tax and you would have dropped the cash at the dealer already. If you want the warranty you pay me to get to the source of the issue, my parts markup, and book time.
Like any other business - you pay for professionalism and accuracy in that particular field. They aren't crooks. An engineer isnt a crook at $150/hr. My lawyer isnt at $300/hr. The Union electrician isn't at $80/hr. Niehter is a good technician in a pro shop.