A 1950's Winchester Model 70 Featherweight has high appeal to many, me included.
Here is one example, a .243 Win. from 1955:


My question is this: In the 1950's was Winchester making Model 70's to be classics that would stand the test of time (think Harley Davidson) or were they just making excellent guns with high quality materials in order to compete with Savage, Marlin and Remington.

It may be a classic now, but back then, I'd bet there was some target market, at some compromise price point to make the company money. Just twenty to thirty years earlier, I think it could be argued that Winchester put a whole lot more effort into each rifle. I think that picture shows the company was bending to the winds of increasing machine production. Harley? I can recall them nameplating two stroke Italian trail bikes to survive by the skin of their teeth. I think some of these names made it because they did what it took to sell stuff, and couldn't afford to sit around and pat themselves on the back. Only thoughts, I do like your rifle, looks nice and clean.

The two standouts in pre-64 Model 70 line were "Featherweight' .270 (cartridge length well matched to action length along with reasonable amount of recoil in light rifle) and .338 WinMag in standard weight rifle. The stock suitable for scope mounting and light contour barrel make this rifle more than a match for modern Tikka T3 or a Kimber. This fact will mean this particular model will be popular and hold value well. The poor man's alternative to this was Husqvarna light weight Mauser rifle and barons version was pre-war Mauser A (African Model rifle).

To answer your subject question, they were and still are!
Remember that the great stock makers used the 1903 SF and 1898 Mauser because they were available and relatively inexpensive. The M70 was not introduced until the mid 30's and would have been too expensive to restock and customize unless you had a customer who was a "1%'ter" of the day.
Back in the 1980's during the heyday of the more recent boon of custom gun makers, many makers told me that the M70 had become the rifle action of choice. In second place was the Mausers and in a far back third place the 1903's.

I think most gun makers of the 1950's were making very well fit and finished guns in the 1950's. Labor after WWII and into the 50's was pretty plentiful, and hourly wages weren't crazy. All the major gun makers were competing, so one company couldn't cut back if the others weren't also.