Actually the best shops I have found for machine work, both in price and quality are boat motor machine shops. Now that requires that you be near a large enough lake that you will have plenty of places to go. But if you think about what a boat motor goes through you can understand the quality they have to have in their work. I mean its nothing to run a boat motor a full throttle for an hour. I got my head milled and the block decked for $150 and that was the most smooth finish for a mhg I have ever seen. Also for another $75 they would knife edge, lighten, and balance the crankshaft. Titanium sleeves were $100 per cyl and that included the sleeves.
But as for your motor there is only so much they can hone away, they should have gotten to that point and called you and said they were gonna have to bore it over, but for someone that already has pistons for a specific size thats not gonna sound good. But there is always sleeving, $600 for a full set of titanium sleeves is not a bad deal.