Archer
··Omega Qualified WatchmakerSo yes the cost is the cost, but the cost varies from watchmaker to watchmaker, and probably more so from region to region. I’ve had huge remedial work done on a nightmare flooded chronograph movement and paid around $500. Never paid more for anything.
Well, I have no idea what movement parts were needed in the example you have given here, but just consider that if the watch in question here required a new balance complete (which is possible given the rust I'm seeing) that part alone is more than the $500 you had your chronograph repaired for.
I fully understand that watchmakers charge different rates, but for someone to come in and proclaim that an estimate is "ridiculous" when they have no clue whatsoever what parts would be needed, and what those parts might cost, is not on. By all means suggest they get a donor movement to use for parts to lower potential costs - that's a completely viable alternative and an approach I take when servicing watches myself when I can find a good donor. The problem is that often donor watches are no better than what you are working on, and many of the same parts can be bad.
I’m not sure it would really be a Franken, at least in my eyes it wouldn’t be. It would be a genuine Omega with a replacement Omega movement. If you flood a modern watch and send it back to Omega and they replace the whole movement does it become a Franken ? And whilst many collectors here value originality (me included), I wouldn’t want to presume that the OP would value maximizing the originality over the cost. That’s a choice for them, and the only obligation to the collecting community is disclosure if they later decide to sell.
There's certainly situations when a company that is servicing one of their own watches decides to replace an entire movement. In Omega's case they will either transfer the serial number of the original movement the new one, or will update the records to reflect the new movement number for a specific watch. In the past they have used special serial numbers on watches like Speedmasters, that start with a "R" as we've seen on the forums. I have personally had occasions where I had to replace bridges that were worn or damaged, where the serial number is on the bridge - the old bridge is sent back, the new one is engraved with the same number, and the new bridge sent to me for use in the watch.
Here's an example - worn bridge:

Serial number on original bridge:

Sent the old one off, and several weeks later the new one arrives:


Engraved with the same serial number:

A company replacing an movement in this way is not creating a franken. What you have proposed is essentially saying that as long as it's the correct type of movement, it doesn't matter where the movement comes from. Sorry but I don't think too many people here would be pleased to say buy a vintage Speedmaster with a Cal. 321 inside, only to find out it's a movement from a Seamaster. Swapping the movement out like this is certainly creating a franken.