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That does not sound high to me! Factory rotors are ~$200 each and factory pads are $300. That means your dealer is likely charging less than two hours labor to install the pads and rotors - that is reasonable. Most places charge two hours (times their labor rate). IF you want you can get the BMW Performance drilled and slotted rotors for ~$10 more(each). Don't forget to change (& flush) your brake fluid (DOT4) and your good to go.
Btw... our cars seem to chew thru rear pads at the same time the fronts are worn out. So check those rear pads too!
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