I just picked my 4Runner yesterday from having the driver side Cat replaced (Timing belt and water pump as well). I had to do the passenger side last March, so I know those dreaded P0420 codes! The worst part is that (According to a tread on this site...) the traction control is disabled anytime the check engine light is on, so I wanted to address this and not put it off too long. I too agonized over just doing the O2 sensors and hoping that would suffice, but I am fortunate to have mechanics I really trust (They've maintained it for all 217,000 miles) and they said they've seen a lot of these go bad and to just fix it now. Mine is a V8, but they mentioned that the V6 is even worse.
I do however wonder about the price. I'm looking at my receipt now and each side cost about $1250, so your's seems rather high. Ultimately I chose to do the cats vs O2 sensor because its my daily driver, and I need it to be reliable, and I'm somewhat compulsive about caring for my vehicle. That, and I didn't want to have to send it back to the shop if replacing the O2 sensors didn't work. For what its worth, be prepared for a shock should you ever need a master cylinder, the part alone was over $2900!
Good luck,
Geoff