Most likely it's a over-run of the 5926; I've heard that these are still in use some places (Canadian "Mounties", I think). I think there was a thread going on over at the S&W forum.
Two things about that... first is that in the thread I read, the price dropped to a more manageable $599... I remember clicking on the link and seeing that price. Don't know if all Cabela's would agree to match.
Second, these aren't cheaply made polymer guns, they're every bit the engineering match of a Sig, and they have a stainless frame in addition to the slide. Even at $800, they trounce the price of a stainless framed Sig or Beretta, and are probably close to a stainless CZ.
People are spoiled by the Glocks, M&Ps and XDs. Quality steel pistols aren't cheap. I think the S&Ws used to run around this price when they were in production.