It looks a nice watch and a nice momento of your father. If it were me, I would not refinish the case or polish his name off the back (you'll never see it anyway as it's on the back) as that is how he wore it. It will look far better with a polished crystal or a new one. I would replace the crown for water resistance as the seal is probably gone but, it's up to you. I have a slightly different opinion, as being a watchmaker, I prefer the water resistance because it helps with longevity.
By the way, the hands look a little short to me but, this may be an acceptable variation. Someone here will say for sure. Here's my similar model (long exposure so the second hand has disappeared!)
View attachment 445375
I also don't think that the original £425 for a service with new crystal, crown (and Omega mainspring/case seal, I assume) is that far out. You have at least £100 in parts there so, it's £325 for the service. They may also be allowing some extra for additional parts - a sort of cover all price for someone who is not a watch fanatic. That's a bit high but not a ridiculous price. You can probably get it done for half that but, do you really want to with this heirloom? Often, you get what you pay for. Bear in mind though that I don't know who quoted you that and they may charge a lot but still give a poor service. If it's a shop, then they have their own markup and if the watchmaker is not on site, he will probably only get half of what is being quoted...
Cheers, Chris
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