You really can't compare what a slab for a shop costs to removing an existing driveway pad and installing a new one. Time is money, and so is transporting equipement and materials. Getting rid of that existing slab is going to cost as much as pouring the new one. The actual pour is quick and simple. The fact that he is using rebar instead of wire is a very good sign. The reason it's cracking is that it was probably poured without any rebar in it. Seems like a lot of driveways and sidewalks where done like that.
Depending on the size of the cracks and the movement of the soil, patching might work, or it will be a total waste of time. Putting something over a slab that is cracking, and moving, will just mean that whatever you put on top of it will end up cracking.
Live with it and seal the cracks on a regular basis, or replace it and do it right.
Get at least five quotes, and don't tell the other guys what you have learned from each other. The best way to find out who is lying to you and trying to take advantage is to say as little as possible about what you do and do not know, and let them say too much.
Eddie