For that size it was more than a fair price. Longarm quilters around here charge around 60-80 for a baby crib one, around 120 for twin size, double bed around $160, queen $240, and king size around $280-300.
Without a quilting machine assuming it were hand quilted it could be double that amount.
Depending on type sewing machine your wife has and she wants to learn to free motion quilt it she could save that money but than again it would be a bear to do so compared having it done on a long arm machine.
You have to consider the time it takes to put it together on the machine to quilt, the wear and tear of the machine itself, the thread cost used to quilt it, and if that person has to bind it by hand it's more.
I would say for what you state your wife is bless it did not cost her closer to $250 to get all she had done to it.
Considering it's a queen size, plus cost of material your wife paid to piece it together, and depending on design requested by your wife when it was quilted that quilt would have roughly at minimu a $600 plus retail value.
IMHO your wife got an excellent deal if all she paid was $200 to quilt it and also have binding done by hand. Around here it would have cost closer to $280 for quilting it and also putting on the binding.