brake question

[stuffy]

i come here to hopefully cure my ignorance regarding brake service,

my 06 hatchback has about 100,000 kms (60,000 miles) on it and has never had any brake service done,
i had them checked about 20,000 kms ago and apparently they were fine- how fine i'm not sure.

i just had them checked at the dealership yesterday and apparently the front brakes are in terrible condition (i haven't noticed anything from a driving standpoint, either feel or noise)
they said the pads have to be replaced as well as the rotors, because the rotors are too rusty???
just some background on my car and driving habits- i have a manual which i downshift at every stop- i coast to stops and am very conscious about using my brakes.

so they want to ding me for about $700 cad to do the job ( as well as adjust the rear brakes).

does this sound reasonable to brake experts out there?