Pavlov, you make some excellent points. I would highly suggest the GD Olga as a likely subject for her view of history. Your time frame is perfect, BTW'
As for settings..... well the original locations are basically unavailable and the use use of original furniture and such is impossible- they are too fragile, if they even still exist! Also, studios have access to their own stock or prop rentals which specialise in such things.
Yes, creating a set is costly, but the furniture ans other props are created for professional use, unlike the antiques in the real palaces. Also, such a production would require a lot of heavy equipment as well as people. The floors would be ruined! Lighting alone would damage wall & artwork. So, all in all, I think the cost are probably even but the logistics quite different. I know the film N&A was not perfect, especially regarding locations, however, it did convey the image of the splendour of the Russian court, most people have no idea of the real locations, especially at that time. I also wondered at times just what palace were they supposed to be at? I still think it a beautiful film. Exteriors, if not at Peterhoff, can be anywhere, can't they? And, almost everything is recreated now anyway.
I mentioned Last Emperor earlier- almost all of that was props, because not much has actually survived of the original, even though it was filmed on location- the Forbidden City. And Titanic, out of necessity, recreacreated all of the fittings of the ship for that film.
As for current views, have you seen the Cranford series? A beautiful costume "drama" with Dame Judi Dench leading. Jane Austen is still popular [not to my taste]. So the studios still have the resources, but need the funds to produce.
Remember, this is a for profit business, not a charity, so costs are going to be high, no matter what or how any project is done!