Fingers284: You are absolutely right....sticker shock can be hard to get past. Especially, in this time of tight budgets. That's why I always recommend buying the best gear a person can afford. Even with a modest investment....it gets a person into the game....and that's what is really important. It really is all relevant, isn't it?
$650 is reasonable for custom leather work. You are very fortunate to have a craftsman(craftspeoplekind??) like that, in your area. I'm willing to bet this fella is a talented saddle maker, too? Some of the best work I've seen, came from folks in that trade.
One advantage of going the custom route over commercially made rigs is that, the prospective buyer has far more latitude in the design and ergonomics of the finished product. As you well know....a well made, well-fitting, long-lasting rig that takes best advantage of the owner's individual preferences...is a great aid to overall satisfaction and performance. If it looks good on the person wearing it too, well.....that's an added bonus.
It is always good to see new and upcoming CAS shooters entering the sport. They are its future. It sounds like the young man you mentioned has already taken a great leap forward in his development as a competitive cowboy action shooter. The positive influence you and your wife will have, is sure to add to his success. I wish the young man well.