Am I crazy for doing this on a 65 Barracuda ?

Sometimes they will over quote work they really don't want to do. Or price it high to see if the owner will jump. Most of the early A Barracudas in good shape are lucky to bring 16K for the entire car. That's why we like them. Good car very affordable!
Yes, and if they really don't want to do it they may not properly treat the areas that don't show.