If you check the old-time target matches, you will find that the entire idea of a 5-yard shoot would have been laughed away as completely ludicrous. They shot 25-yard and 50-yard matches and they shot big, heavy bullets because they were a lot more stable than little, lightweight ones.
Calculate the time it takes a bullet to do 50 yards...... say, at 600 ft/sec. And then remember that that bullet drops 16 feet in the first second.... and you get the idea that your sights are right on for what they were doing with the guns.
The whole idea of a handgun, at least the military ones, was to prevent some anti-social type in a different uniform from doing a very messy gastrectomy on you with his very shiny bayonet, spoiling your pretty uniform in the process. So you took him out at the longest distance you could count on your gun to do the job.
The result was that 25 yards was considered close-range shooting. What we do today may be more real-world-effective NOW, but it wasn't, back when your revolvers were new.
There are some good discussions on revolvers in "The Gun.... and its Development" (W.W. Greener, 1911) and in "Text Book of Small Arms - 1909" (HMSO, London).