I think you have an excellent old Colt there. Some makers have made reproductions that attempt to mimic a revolver with a lot of wear, though that one actually has rather less wear than the reproductions.
I'd say the wear is a result of being carried in a holster. Even revolvers I've owned that were purchased new quickly showed holster wear at the muzzle. It may not be a collector gun by collector's standards but it is certainly highly desireable.
The front sight looks a little odd. Do you suppose it has been modified in some way?
Shoot low, sheriff. They're riding Shetlands!
Underneath the starry flag, civilize 'em with a Krag,
and return us to our own beloved homes!
Buy War Bonds.