I was talking a few months ago to one of our forum members who had the same problem and he took his jeep to auto rust near you in Mass and they sand blasted the frame,cut out all the cancer,sprayed a weldable primer, welded in the new safe T caps (both sides) and undercoated all for $1900. And I thought that price was a little high considering the safe T caps are less than $400. When I read you were quoted a price close to $3500 for this type of repair I started thinking,
it seems like this shop may not be that interested in doing the job for a fair price. But, for $3400 they would be very interested. I bet you can get a very good frame from out west have it galvanized and shipped to your door and have someone do the frame swap for $3500 and never have to deal with a rusty frame again. If your interested in saving some money and your handy with a grinder you can do this job your self and here's how. Barrow or rent a car for a few days while your repairing your jeep (3 days $150)
Get the safe T caps , remove the cross member and cut out or grind the rust, spray inside the frame Eastwood's frame inhibitor, position the safe T cap and clamp. Call a professional mobile welding service that has "liability insurance" to come to your house to weld the safe T cap in place. The welders hourly charge is around $60 and I'm sure he or she will not be welding more than three hours. Buy 2 cans of undercoating or some por 15 and call it a day! This job is complete and done properly for under $1000.