Regarding the lock -- Attached is another image that shows the pin lock better.
When the thumb button is pressed the “J” shaped pin moves to the right. The pin moves out of the locking groove on the Johnson bar's handle. That allows the sliding handle to move down, towards the viewer in the image, and the bar can swing towards the floor.
The “sliver” to the right in the earlier image is beyond and above the block, It is a piece of the lower panel trim, and is not part of the downlock block assembly.
So, in answer to one question -- the pin is the locking mechanism, not the “sliver” thing.
Re prices -- I did get a price for the uplock block from LASAR, and it was about $250 for the part (don't have the quote in front of me, so that's an approximate figure). That price is for the machined aluminum block, it does not include the button, slide locking part, or the microswitch assembly. I was told you salvage those parts from the old unit and reuse them.
Since the new block will hold the Johnson bar in a different location (albeit slightly) the landing gear preloads may change. At the least, it seems prudent to check them after installing a new downlock block, and before lowering the Mooney back onto its “feet.”