Remington developed the LTR when it realized that most shots taken by police snipers are under 100 yards. The heavier long range feature (800 yards plus) of the PSS wasn't always required and a lighter, handier rifle could fill a niche in the police arsenal. Hence, the LTR was developed. Originally it was to be based on the lighter Model 7, but Remington decided that the LTR should not sacrifice durability (or the customer's critical eye with this respect) and the 700 action was selected. Various barrel flutings were tried before the current version was adopted. One prototype even had an 18" barrel.
Remember, the mission for the PSS is different from the LTR. Tailor the equipment to fit the mission.