Yes....that's how it is done.....but i guess pricing has increased quite a lot.....i used to get the motor replaced same way but much cheaper.....guess could depend on type of motor or brand it is based on.
That might also be the reason.....also i would remove and install it on my own along with my dad so no service charge there.....but motor price with exchange was quite low.
If there is Burning Smell while turning the Motor , It means the Coil has Burnt , And if there is Grinding Noise , it Has to be the Bearings , Still its Repaired And Running , Thats the Good News .