If you buy it at the price that dealer is asking, you are only encouraging them to continue to charge more customers an unfair price. Inflation is the bane of the consumer right now and we do not need to add to it. :(
There is no need to go to a dealer body shop. I would just get a repair estimate from a couple of regular body shops (In case you need to pay out of your own pocket) that have a good reputation for quality repairs and have them do it. Independent body shops can match the paint just as well as...
As a general rule an extended warranty is not a good value, but it depends also on how many miles a year you drive and the roads you drive among many other factors.