Does it warrant changing the distributor when the water pump goes out

I just completed a long road trip. During the trip the "Low coolant" info warning came on intermittently. I checked the coolant level in the reservior and everything loked okay. Upon reaching my detination I took the car to an auto repair shop.

The auto shop showed me that the water pump has started leaking and needs to be replaced. But, they also tell me that they recommend that I also change the distributor, since the leakage may have gotten into the distributor due to its location to the water pump. So my options are:
1. Replace distributor
2. Replace only cap & rotor on distributor
3. Do nothing to distributor, until there is a further problem
Obviously the water pump has to be replaced.

Are they being straight with me and should I approve replacing the entire distributor along with the water pump?

They gave me the following estimate of costs:
1. Water pump & Installation $700
2. Cap & rotor (parts only) 350
3. Balance of Distributor (parts only) 300
4. Installation of #2 or #3 parts 170

Are these reasonable or should I do some shopping?