The bigger concern with that cabinet is that it looks like the cone buttons on the upper control panel area are missing and drilled out for normal buttons.
Price isn't really out of line considering that those monitors and the Playchoice motherboard are each worth $200 each, $50 each on the games and you are already at $700.
Hipster Nes collectors drove up the prices of Nes stuff so high that it eventually started dragging up the prices of the Nes based arcade hardware too. Vs. Cabinets, Red Tents, and even Playchoices used to basically just be filler trash. Vs. games were hard to sell for more than $100. Red tents were just boat anchors that auctioneers begged people to buy at any price, and fully loaded dual playchoices were nothing special and did not bring high dollar