The dealer charged me $1700 to replace the one in my 2004 SL500 a couple of years ago. That was for a new plate, programming, and transmission filter and fluid change. While not cheap, I figured it wasn't ridiculous. Prior to that, I had removed the old one, breaking off the plastic cable plug, and sent the whole thing to
www.circuitboardmedics.com. They had a matching plate and was able to transfer all the coding over to it. Eventually, it failed too, and that's why I finally took it to the dealer. The whole thing was done in a day and never had another problem.
Not sure where you are located or what the dealer wants to charge, but it seems your options are limited since only an authorized Mercedes dealership can get new plates.