Pricing advice for a childbirth job...

A co-worker of my wife is due next week (Feb. 8) and wants to hire a photographer to chronicle her labor, the birth, and after birth (pun intended). She had her first child's birth chronicled and had a music dvd produced but felt she was overcharged.

Long story short, I quoted her $800. I feel that's a bargain, considering labor could be "who knows how long" and it's obviously a once in a lifetime event. I wouldn't even consider shooting a wedding for that amount. She declined because of the price and is going to contact the photog who shot her first baby's birth and "overcharged" her. The overcharge?.....$300.

My wife of course thinks I should take the job for that amount or less, as I'm not booked for a five day block surrounding the due date.

Professional pricing integrity, or keep peace with my wife? That's the dilemna. Any opinions?
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The purpose of an open mind is to close on something.