Beavis,
Yes, think it would be subbed out, however, it maintains the status of the car to that before the accident. It still carries all the warranty that it had before and should hold it value, instead of the possibility of selling the car with the reduced warranty.
Only suggested this to bump up the repair price, did not want to imply that it would be an inferior job if it was done anywhere else. As you never know how good anyone is until you get references. The price will likely be higher as everyone puts their margin on, instead of the insurance company doing as cheap as possible.