They may or may not be trying to scam you
A better answer could be had if you stated the mileage.
(edit) Sorry didn't see you posted it.
Yes you could have wear but it probably isn't dangerou yet.
I have a 99 and a 2000 Taurus. The suspension is the same on both of them. It is just like your 2002
The ball joints are a wear item on these cars. They do get loose very quickly compared to other cars.
$500.00 dollars is way too much to fix them
$150 for both sides would be an average number depending on where you live. It is about an hour worth of labor and there are several different prices for different mfg of the ball joints.
You will have to have the car aligned after so that will add between $40 and $60 dollars.
Unless you have banged the suspension around or hit a curb you shouldn't have to have the spot welds ground to reposition the strut.
Some cars are barely within tolerances when new and the strut weld does have to be done on those to properly alighn it.
Outer tie rods are another high wear item for the Taurus.
I could tell there was wear on my 2000 at about 70K and I didn't change it until about a 100K
I hope that helps
Mike