Yes, the warranty work has become an issue for Korth. Not sure what their arrangement is exactly with Leupold, as I would expect normally a repair agent gets paid by the manufacturer for warranty work, and if it isn't under warranty, the customer pays. In the latter case, perhaps they have enough to do and are using deterrent pricing to discourage customers from wanting modifications and upgrades. Since they are the importer/distributor, their main profit comes from people buying more Leupolds, not modifying their old ones.
I asked Trace about changing the reticle in one of my old Weavers and was warned it is pretty expensive because it's a lot work (basically everything would have to be dismantled and recalibrated when reassembled) for the model I have and thus pretty expensive.
Unfortunately, if there is an independent who can and will work on your Leupold for less, he probably can't get replacement parts at a reasonable price, or they might not supply them at all.