All Honda engines are interference engines - if the timing belt goes, bad things will happen. Whether you have the dealer do it, shop around for a cheaper option, or do it yourself; it should be done.
I changed one on our old Odyssey a few years ago. It cost me $300 (you'll need a special spanner wrench to get the fly wheel loose) and 7 hours or so. If you're mechanically inclined and have a nice shop/tools, it's doable. $1000 sounds like a decent price otherwise.
The timing belt needs to come off to change the water pump - it's a $40 part and a few minutes to replace while changing the timing belt. Definitely have that changed while it's apart.