I think it is a little higher than most when it appears from the site, the dam has not been shown. Not sure of sire as I did not see you list him. The parents of the dam however, are both Champions. But,
if she has an excellent reputation in the show/breeding circles and you really want that puppy, and can afford it, I'd say follow your heart. I paid $1500 for Annie, they discounted to me as a previous customer. She is really an excellent looking puppy. Too soon to tell if she might be show quality but she has the right stuff now.
I wanted a PET too. Her parents are not Champions (as she no longer shows) although they appear to be in standards. Quality was important because I want to support those trying to breed to standard and enjoy the regulation yorkie traits. I also wanted to know that the breeder followed good breeding practices and that is worth quite a lot! The purchase price is really not that big of a matter when you look at the lifetime of a dog. You will spend way more than that on vet bills, care, feeding, clothing, toys, carriers, play yards, beds, and all the other things we "must" have for these precious little ones.
I guess I would ask myself, is there another puppy that I want as much for a lot less? If not, then I would probably make the plunge. If you have to wait around for a year or two to find another of the same quality to save a few hundred dollars, is the wait worth it? Just make sure you get a really good health guarantee and a commitment for life-long mentoring on raising your little girl. Meet the breeder in person, watch her with her dogs. You get a feel pretty quick for the ones who hold their dogs in high regard and those who are selling just for the $$.
When I sold my pups, I sold them for a lot less than the breeder I got mine from. She thought I should be asking more. I told her I did not feel right about asking the same as she did because she had years and years of experience, an established business and offered owners a wealth of knowlege. She has always been there for me for any questions I might have. She actually helped me find my male, Ben from another breeder, even going with me to look, so that I could have a breeding pair as she had no males unrelated to my girl. She has been to my house and I to hers on numerous occasions. This kind of after-sale caring attitude and obvious love of the breed is really worth so much. If you have to pay a lot more for the puppy, but get that sort of respectable breeder willing to be there for you and the pup, I think it is worth it.
I could not find any breeders in my area that were currently showing their yorkies. That was my first choice when I looked to buy mine too. I think it is well worth the extra to buy from someone who is still showing and having their dogs evaluated as to conformation. You pay more because it costs them a LOT of money to do that. A lot of times you are just lucky to have a show breeder WILLING to sell one of their pups without knowing you personally beforehand.