You can get the section of pipe, goes from exhaust manifold to post catalytic converter for a short bit, for less than $200 from aftermarket. This is the four cylinder model, likely 2AZ-FE
The OEM part number is 17410-0A370 . Just FYI the bracket I circled in yellow, is the bracket I was talking about. The two studs rusted off completely and part number 17584B completely fell off my car. The dealership I went to, after getting frustrated throwing the parts cannon at replacing parts trying to diagnose the whining sound, they did not tell me that 17584B completely fell off. I discovered this myself, comparing the diagram to my car, and realizing something didn't look right.
The OEM part has a MSRP of over $1600, so your $1500 estimate from the dealership with labor, not bad at all.
However, this is just a steel pipe lol, so aftermarket is fine.
How's the rest of your exhaust system? At 17 years old, it's likely leaking elsewhere. My 2005 Camry, the nuts on the studs on the exhaust flange that go to this piece of pipe are in good shape, I don't think I will have issue getting them off. The rest of the nuts on the rest of the exhaust, not so much.
For about $200 you can have a shop weld in a new flex pipe only. Or for about $200 you can replace that whole section of pipe.
Do you or are able to do the non-welding work yourself? If your flanges are also leaking on either side of this pipe, might run you $400 if you have a shop do it. If you have flex pipe replaced and both flanges repaired at the shop, you could get that whole section of pipe for half the cost with brand new aftermarket parts. Might as well as just get brand new aftermarket part.
What I'm saying, replacing just the flex section, if the rest of the exhaust is in bad shape, probably doesn't make sense if you do the work yourself.
My exhaust is leaking at the flanges and around the muffler. So I'm going to replace post exhaust manifold onwards using aftermarket parts.
Whatever you do, I'd confirm that it's actually leaking before doing anything, if you can.