Even though 6500 were made in blue, not many survived compared to the nickel guns. I track the features of the baby russians to learn more about them. Right now I have info on 290 surviving guns. Of these only 27 are blue, or 9.3%. Nickel are 89% and a combo of nickel, gold, and silver are 1.7%.
As far as price, I would gladly pay double the listing the price for a blue baby russian in the condition you posted. If were at auction, I would not win the bid at $800.
If it was a blued baby russian with a 4" barrel in that condition, I would say run and buy it NOW! They are a lot harder to find than the 3 1/4" barreled guns.