He wont come any where close to 100 amps on a 100 amp breaker. Its a sub panel for a garage, not a saw mill. If that panel see's 40 amps Id be surprised.
You can still install GFCI's in the garage on a two wire system. A GFCI operates by sensing a difference between the hot and neutral, it doesn't require a ground to provide protection.
The Cree T8 LED lamps seem like a great product. I just installed a few hundred at work and am happy with the quality and light output. And the best part, no florescent flicker!
Why upsize to #1. 2 thhn is rated to 115 amps
#8 is sufficient for 100 amp ground. I always leave a loop in J boxes, and you dont need to cut and splice them, just a loop. And no extra bond bushing required if you dont splice
I dont know the labor rates in Michigan so I cannot give you a guess on the quote. If its just the panel upgrade to start, its only one days work for two journeymen. So you shouldn't have to pay more than 24 hours of labor.
But as far as questions:
Will the electricians be doing just the panel...