True about the codes, usually.
When a cat is bad, it is plugged. This means your exhaust cannot escape and your engine may idle fine, but not rev up properly. You can "feel" the back pressure.
True the stock cat is expensive from Toyota, as are OEM replacements.
One quick and cheap repair is to "Gut the cat" then add an aftermarket inline cat. You didn't say the year, but if it is post 1996, you may get a "Check engine" light and have trouble passing inspection.
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