Hmm... well... I think i will give you two answers to you question.
1) Probably that is a *little* high, but not insanely high. Pythons have gone up a lot in value in the past few years. I have heard of NIB Pythons going for $1100-1200 lately. There is ONE stainless one for sale down here at a local shop for $600, but it is the only Python that i have seen for sale in months. In other words, if you like it and can afford it, buy it. They are elegant, very slick, and quite accurate.
2) Unless you are particular fan of the Python, consider a S&W 686 (pref old style pre-agreement). They are not quie as smooth right out of the box, and may not make quite as good a dedicated bullesye gun, but they can be tuned to have VERY nice triggers, are generally as accurate as i will ever be able to shoot a handgun and seem to be a lot 'tougher' than the Python. (I have seen Pythons that shot out of time in less than 150 rounds of full power .357 mag ammo.) HOWEVER, if you are not gonna shoot a lot of magnums then that is not a big factor.
Personally, I would take the $700 and shop around and find a matched pair of used S&W 686 and 617 (k-frame .22LR twin).