1994 Toyoto Camry Transmission Problem

I own a 94 Toyoto Camry, Automatic transmission.
It has put on 141000 miles.
I recently had a problem with the car. The car stalled suddenly and did not move, when I took it to the repair shop I was told that there is problem with the transmission and I was charger $1750/-. This was the summary given at the end of the repairs. Transmission seems to be wornout, remove trans asm and tear down to find that all the forward cluthes and steels were very badly damaged, all metal was in cooler and also in torque converter, trans filter also clogged with metal. Replace with total rebuild kit along with all new steels and converter, replace all cluthes with new and also all new gaskets, install new torque converter, flush out all trans coolant lines.
Question 1: Does the above work cost the amount that I spent?
Question 2: I was told that this problem was due to normal wear and tear. Is this the case or this due to something else.
Question 3: Now if I want to sell the car, will it have a good resale value.

Thanks