Hoss1961, welcome to the forum. That's a fine looking K-22 Masterpiece, which from its serial probably dates from late 1953. (I have one numbered in its vicinity that shipped in December of that year.)
If you have any feeling for that gun at all, I would keep it. The K-frame .22s have become very much in demand in recent years, and their appreciation in value shows no sign of declining.
As to the Model 35 question, the smaller I (and later J) frame .22s fell out of favor once the K-frame target models established themselves as the target revolver of choice in the 1930s. The .22/32s with shorter barrels stayed popular through the 1950s and 1960s, but the longer barrel small-frame targets (that is, the Model 35) just didn't have the appeal of the larger models and the model was eventually discontinued.
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David Wilson
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