It was running fine and just up and died, and now has no compression on any cylinder?
If it really has no compression at all, it's shot. It might be rebuildable, which would be my choice if it's possible, but I'd be doing the work myself. Your mechanic has a different set of priorities than you and will want to throw a brand new long block or crate motor in there, because it's the least amount of work with the most profit for him. It might be the most economic way for you too, but ask him WHY it's got no compression first, ask him about a repair or rebuild, ask him if he'll freshen up a junkyard block and install that instead, etc.
OR yank that motor and rebuild it yourself. With a copy of the factory service manual and some basic tools it isn't hard at all, and you'll save a bundle and learn a bunch. If you don't need the 4Runner back on the road right now, I highly recommend tearing into it yourself.