You don't start a business if you think you can't make money at it. Obviously Colt thinks they cannot make money making revolvers for a price-sensitive, shrinking market, so they don't.
A Colt Python cost about $1,000 in 1990, that would make it a $2,000 revolver today. Ruger turns out $800 revolvers, S&W turns out $1,000 revolvers, and Taurus turns out $500 revolvers and gets a lot of the low-budget shoppers dollars. Obviously Colt doesn't want to play that game.
If you think you can do it better, get the funding, get a CNC machining center, hire a bunch of experienced gunsmiths and metal workers, and start turning out Pythons. I agreee that it should be a lot easier to do nowadays with CNC machining, but a lot of the hand work is in the polishing.