Toyota Repair: Leak in Rack-in-Pinion Steering, accordion thing, toyota avalon

Question
My 1997 Toyota Avalon (60K) recently "failed" the NYS inspection because I was told the rack-in-pinion steering was leaking steering fluid.  The steering fluid was low and the mechanic did show me the underside of the car and pointed out the steering.  The bottom side of the rubber accordion thing did appear wet (top was dry).  He suggested that that the whole assembly would have to be replaced, a $1,000-$2,000 job with parts and labor (I am still waiting on a full estimate).  Does that make sense?  Is there a less comprehensive (and expensive), but reasonably effective alternative?

Answer
The steering rack is normally replaced, most dealers do not repair them, you can save quite bit of money by requesting that the repair shop or dealer use an aftermarket supplied steering rack, these are remanufactured and much less expensive than the factory unit, you should be able to have this done at around $800 parts and labor.