I'm in no way a Garmin defender, but (sadly) I don't find that fee to be excessive.
Garmin's labor rate is definitely in the $150/hr range, when you take into account taxes/health care/etc they have to pay for their employees and whatever % profit margin they have to tack to this, because they're definitely not a charity.
So that's three-ish hours total that will be needed by a tech to open it up, run a diagnostic, figure out what's wrong, look up parts availability, put it back together , then hand it to someone in shipping/receiving to send it back to you (same group who spent some time with the unit when it first arrived). There's probably a receiving inspector in there as well, charging some time.
And remember, it probably takes them the same amount of time to open it and fix it, if they had the parts, as it takes to open it and not fix it because they're out of the part needed for that unit. Those $500 that would normally go in your $1500 repar bill now have to go in your non-repair bill.