On Gunbroker.com someone has listed another .22LR Mauser, referring to it as an Israeli Mauser. This specimen clearly has a Remington barrel. Two of my readers have now stepped forward expressing their understanding that indeed some K98s were converted for use by Israel to .22LR. I am sure they are genuine in their beliefs, but hearsay is no substitute for substantiated research. I am admittedly ignorant on the subject, and would be more inclined to believe that some hobbyist gunsmith(s) decided it would be cool to re-barrel a Mauser in .22LR. If these are the genuine article, then the initial asking price of $895 is probably reasonable, as this would be a sought-after collector's item.
Personally, I would not have much interest, variety of reasons. First, if one really wanted a good target .22LR, there are much better choices. Second, if one wanted the thrill of firing an Israeli Mauser (or wanted to give a child or grand child the experience) without the kick of a .308 cartridge, you can actually buy a chamber insert for .308 rifles that allow the use of a variety of pistol cartridges. Arguably, such chamber inserts would have been smarter than creating a .22LR in the first place, depending upon exactly what you were trying to train the shooter to do.
As usual, buyer beware!
UPDATE: Apparently sold at $895.