I guess it depends on your geographical area, but that price seems a little on the high side. Last gun show I was at, I saw 4 similar diamondbacks.
one was about 85%, no box or papers, blued for $900
one was about 75%, no box or papers, blued for $700
one was NIB, 100%, nickel with box and papers for $1700
one was NIB, 100%, blued with box and papers for $1400.
Again, I don't know how your particualr area is with Colt's, but I would try to talk them down some.
I can sympathize with you for wanting one. They fit my hand to a "T" as well and the 4" balances perfectly. If I would have had the extra $, the one for $900 would have come home with me.