I recently went to a body shop to get a quote to fix up my driver side door. They quoted me $650 said re-skinning was the only option with 7hours of labor.
Does this sound right to you guys?

 

This doesn't look that bad from the picture (damage only around the door handle?). I'd say they quoted you that as the cheapest way to go. To fix it while saving the skin they'd have a lot more assembly/dis-assembly, metalwork time and that cost outweighs the cost of a skin. However, changing the door skin might be more work as well as the new skin might not line up. So for them, its cheaper to reskin it because they can leave all the door internals in place. The price seems about right, I think 7 hours is a bit high, but for a total of $650 its certainly fair for around here(Michigan).

If it was me, I'd try to do it on my own. I can spend a lot of shop time to balance out the $650.