Armalite never really got into production, they actually had the first ones made in Holland. The whole design got sold to Colt for production - just like the Masada was sold to Bushmaster.
Colt probably keeps the price up to justify contract price comparisons. They run about $1100 each on the government nickel with the KAC handguard, which is a $300 option.
That makes a stock handguard equipped M4 type Colt about $800 retail, hmm, the numbers are a bit off, aren't they? Add that civilian Colts in the past were known to substitute non-milspec parts. Just as good, just not inspected part by part, more like batched.
What the new LE division is doing, only a teardown and inspection by experts will tell. Colt won't. It might change next month with a different supplier anyway.
Colt doesn't make junk, they have a good rep, and Customer Service is there to fix the rare problems.