I believe that's exactly what they are doing with a 8k quote. Kinda like saying give us 8k and we will piss in the wind and see what direction it goes.
We have just looked and we have actually only covered 4K miles since purchasing the car! Really let down.
I feel like there is a good chance the engine has no real damage. The AA man himself said it sounded fine and he picked up 2 Mazda 6 last week which he thinks have the same engine and they had same fault and they sounded like an old taxi, it was knocking so loud!
What's the possibility of putting a turbo on, and following the procedure mentioned above? Sump off, thorough flush, new oil, new filters, etc