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At the time, the .44-40 made sense. Now, however, thanks to the CASS, we have available again, a center-fire round, that is pretty close to the original .44 henry flat rimfire in size...the .44 Russian...and don't forget, there was a .44 Henry centerfire chambered in some 1866 Winchesters. There just might be enough room to fit 16 of these little .44's in there.
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It would be a niche market. Not everyone just shoots at steel targets with their replica rifles, and a .44 russian isn't an ideal hunting round (niether was the .44 rimfire, that's why the .44-40 came into being in the first place). Don't hold your breath that any manufacturer will mass produce a rifle for that round.
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There have been reports of frame stretching from the use of the
.44-40 ctg. in the brass framed Henry's, and the use of a smaller .44 makes more sense.
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That is only partly true. The frame stretching issues were reported with HOT SMOKELESS HANDLOADS, not factory or full BP loads. As long as the ammo is within SAAMI specs, the rifles are fine.