Bummer.
Something about shiney vehicles I guess.
Years ago I just got done painting my bonneville after spending many months on it fixing a billion rust spots and dents. I normally never get around to painting anything for myself. A few days later I come out of the grocery store and watch some punk open his car door hard into mine. I start cursing and running after him, and the arse flips me off and takes off before I even get close to my vehicle. He left a big dent in my door.
A kid I painted a car for totalled it less then a month later.
I painted my moms car back while still in school. She fell asleep driving home and went through the ditch hit a tree a few months later. They had to use the jaws of life to get her out, and was in pretty rough shape. Her backbone shattered and a piece lodged in her spine and had to go through a lot of physical therapy. She still hobbles some to this day. She still has pics of that car in the salvage yard with new shiney paint, but every panel on it smashed.
Most important thing is your okay, vehicles can be fixed or replaced.
I would fight with the insurance company for new oem parts. I would only consider used or non oem if either not available or meant the difference between totalling or not. Your bodyshop should want to use new oem and help fight for them as well, unless they are on your insurance companys drp program (basically they agree to make little money and help save insurance company money for steady work). Is this a shop you choose, or one your insurance company steered you to? You have the right to have your vehicle repaired at the shop of your choice.
I have trouble seeing from the pictures, but a bumper and fender are both easy enough to replace and shouldn't be all that many hours, that if any kind of sizeable damage, it would be smart enough to replace then use any bodyfiller (not that it is neccessarily that bad) on a newer vehicle. Probably would also require blending color and clearcoating adjacent panels for color match. And I am not sure what you are saying about painting half a bumper. That would be stupid, if they are talking about only clearing half the bumper. If thats blending new color into the existing color and there is no damage in the area past where the color would be blended, then I can possibly see that if it means will save blending into and painting one of the fenders or something. I know you said it was your insurance company that wrote the estimate, and if they won't have to pay, don't know what advantage it would be to them to write a cheap estimate (unless they may have to cover it). But progressive is supposedly known to be among the worst to deal with and about paying for quality repairs. Might be something to think about in the future
ASA Arizona survey reveals best, worst insurers - - ABRN (Automotive Body Repair News)