MrJayB and Beachcomber, welcome to the forum!
Yes, my beloved little 696 went from being the dusty scurge of the dealer's S&W shelf bearing a faded (... and, thankfully, old!) price tag to becoming my prize several years ago. And, it was none too soon, as the then recently discontinued revolver had evaporated quickly from the pipeline. It's 2.5" Al/Ti hammerless sibling, my 296, was canned a year earlier, yet persisted much longer as a 'closeout' goodie. For a CC/PD that 296 is fine, but the 696 is a far superior plinker. The 3.125" Al/Ti sibling, the 396, with a hammer and a HiViz front sight, is still lingering around new, if you hurry - expect to pay $600 or so.
Probably the best buy on a new 3" .38 is the S&W in 64, at MSRP $583 in the '05 catalog. The new 2.5" 66 on my dealer's shelf was still $439 last week, despite it's absence from the '05 catalog. If you want a 4", the best deal currently seems to be the new model 66 replacement, the 620. It was $489 locally, with it's 66-like partial lug, something I like, and the 686+'s seven shot cylinder, another plus.
I love that 696 - but, as I reload, my ammo cost is low. Finding .44 Special ammo outside of a well-stocked gunstore is difficult. Everyone carries .38 Specials - a great lower-cost plinker round. Often times, new loads are little more expensive than my reloads, too. And, with the old 'FBI load', the +P 158gr LHPSWC, still around, or the new Speer 135gr +P Gold Dots, it is still a great PD caliber.
Stainz