I can see a Model 10 might fill a niche similar to that filled by a K-22, if you're thinking of a plinker/fun/range gun. The target-loaded .38 spl. is astonishingly accurate (the fixed sights may be a bit of an issue, but if you're just there for fun and not competition - who cares?) and easy and cheap to handload. Besides, the .38 Spl. is powerful enough to use for your home defense needs if necessary.
Like Mike, I wouldn't buy a new one from the company. But, like Frenchy, something of this decision has to do with the sweeter quality of some of the oldies, not to mention the better deals they can present. There are plenty of lovely old Model 10s out there, and some of them are priced right. (Atticus, my friend, get yourself back to that store and see if he'll take $175!)
I was at a gun show this weekend in Albuquerque, and one of the two guns that spoke to me the most was a gorgeous Model 10 spikenose (the other was a terrific old Belgian Browning pocket .380, 99% with box and papers for $375). No box on the Smith, 95-98% condition. Guy wanted $275. Now, I think that price was fairly out of line, especially for a gun show (don't know whether I'm getting conservative in my old age or whether folks just want too much for their stuff), but the revolver was a lovely thing to behold and I was glad to point it out to the neighbor kid I'd brought along to the show.
Sheesh. Now that I can afford the whiz-bang wünderguns I always drooled over, I'm getting hung up on the .38 Special revolvers. First I buy a Police Positive Special, now this falling in love with a model 10, about as plain Jane a gun as there ever was. I am getting conservative in my old age! I'm glad to see I have company: there's something about a well-executed, classic, simple and effective design in a caliber that's well-executed, classic, simple and effective as well.
BTW, I think Laz elegantly expressed my exact feelings about the thin-barrels v. the heavy barrels and frame-mounted v. hammer-mounted pins on the model 10s . . . well said, Laz!