It's popular on this site to welcome guys "to the madness". Once you make the decision for more power and torque, you've really made the decision to go over to the dark side. Power costs money, and lots of it. "Welcome to the madness" indeed.
It's pretty tough to know if the quote is legit or not, since it was pretty short on any meaningful specs. I'd have the builder get really specific on what is going in the motor, and then make the determination on whether it represents a good value or not.
A word of caution is in order here. VW guys (me included) tend to come into the hobby "value oriented" (another word for "cheap"), and once you decide you want more than about 100 hp, the price curve starts getting pretty steep. A bigger engine makes a lot more heat, and requires a lot of extra stuff to get rid of that heat: big headers, remote coolers, good cooling tin-- it all costs money. Figure it into the price of the build because you are gonna' need it.
The other broad statement I'd make is: spend money on the heads. It's the first place most budget builders cut, and probably the most important piece of the puzzle. A 1915 with stock heads isn't going to run much better than a stock 1600, but even a 1600 with good heads will get your attention.
I'd talk to a LOT of builders before you buy, and spend some time on the Samba and Shop Talk Forum forums before I turned over my hard earned cash. I'd talk to Pat Downs from CB, Anibel Chico from Chico Performance, and Art Thraen from ACE before I did anything else.
It's exciting, and getting there is at least 2/3 of the fun. Good luck.