Harley's service time standards call for approximately 2.2 hours labor to do the 1k service on a Touring model. That of course includes changing all the fluids, adjusting the belt, supposedly checking the torque on all the critical fasteners, and then all the BS items like checking to make sure all the lights and controls still work a week after they sold you the bike. IMHO, since they can do all the other items while waiting for the fluids to drain, it would be more realistic to say about 1.5 hours IF they actually do everything. And IF they really did everything and did it properly, I wouldn't begrudge them even the full 2 hours at whatever their labor rate is, even though the entire 1k service is not necessary and only exists as an extra profit item and CYA for Harley. If Harley built it right, and the dealer did the prep he is required to do by Harley before the sale, you shouldn't need to have a customer pay for them to recheck the same stuff a week or two later.
Anyhow, $250 to do the full service isn't something I'd call excessive (just unnecessary). But the crooks charging $400 to $500 are just that, crooks. It's real easy to figure out what it should cost if you take the time to calculate the retail price of the parts required (basically six quarts of oil, one oil filter, and a couple O-rings for the drain plugs), then 2 hours times the dealers listed hourly labor rate.
6 quarts SYN-3 $12.95 MSRP X 6 = $77.70
1 Superpremium Oil Filter $14.95
3 O-rings $0.98 MSRP X 3 = $ 2.94
TOTAL $95.59
2 hours labor @ $80/hour $160.00
Grand total less any tax $255.59
Jerry