I think it's a good real world price for a VG-Excellent M-66. Not all dealers think they can get highway robbery prices just because some ask those on the Net. Especially if he deals mainly in poly-framed autos. He knows his local market.
IF you know how to examine used guns, it could be a really good deal.
BUT...the GP-100 is a beefier gun with advanced design features and will endure better if you plan to shoot a LOT of full .357 ammo. The M-66 and all Combat Magnum variants were intended for use maybe 10-15% of the time with full loads. This is from the mouth of Bill Jordan, to me in person, and I guess he of all people knew what he had in mind. BTW, Bill also told me that he considered stainless steel handguns to be the greatest advance in firearms design in over 100 years.
I own both and would sell neither. Each fills the appropriate niche. If you have neither, I might pick up a clean M-66 first, as they're not made now and you have to grab them as they appear. But I'd budget for a GP-100 ASAP after that buy.
You probably won't need to shoot .357 ammo a lot until you can afford to add the larger gun. A .357 was never meant to be a "range gun." It's for when you need that power to kill something that can't be handled well by a Plus P .38 load and there's a lot of very good Plus P .38 ammo now. Range guns should usually fire just target or std. speed .38 ammo except for occasional familiarity firing and real world carry when warranted.