Definitely get a second opinion. Like has been said all except oil and brake fluid flush are inspection items. If the shocks/struts leak they don't pass. If there is play in the ball joints or cracks in the bushings (included in the control arms) they don't pass. If the axle is leaking or is making noise it will not pass. The prices seem to be out of whack to me but I've been out of the retail game for awhile. Also, I know you keep saying that your wife never hits anything and it's only a family hauler but all of this stuff can go bad from just normal wear and tear. Our roads suck so keep that in mind.

All that said though I would be surprised if a 7 yo 70K highlander needed all that. Also, I would recommend talking to the actual service advisor and/or tech before jumping to too many conclusions. Be pointed and ask if all of this is required for inspection. If they say yes pick it up and take it for another opinion. At the very least take your business elsewhere just because they tried to lump in an oil change and brake fluid flush into an inspection. However, they may at that point say it needs X for inspection and the rest you can expect to do for the next inspection or whatever. I used to do that for my customers so they would be able to plan a bit and be informed. I would never just drop an estimate like that though without explanation. I'm trying to give them the benefit of the doubt because it is a tough industry. But, the fact remains that some shops use state inspection as a license to replace whatever the hell they want and that sucks. Up to you to determine whether that is the case here or not. Let them explain themselves first if they can.

Sorry for the long-winded response. Just trying to help and add perspective from the professional side.