Based on the functionality of your package it seems to me that it belongs more to TeX than Python realm, so I agree with you that CTAN is the best place to put it. There are several different aspects in your question, I will try to address them below as thoroughly and generally as I can.
Scripts vs. binaries
Firstly, the good news for you is that scripts are much easier to integrate into TeX distributions than compiled programs. To get the latter into TeX Live or MiKTeX it is best to get in touch with the distribution maintainer(s) through the appropriate mailing list.
Submission to CTAN
You need to decide whether to submit your package to CTAN as a flat .zip archive or in a .tds.zip TDS format (see also TDS submission guidelines). TDS avoids ambiguity in file layout, but be sure to adhere to the specification - a flat .zip with no subdirectories is preferred over messed up .tds.zip. Test your .tds.zip before submitting, e.g., install into TEXMFHOME and see if everything works (see below on how to test the executable scripts). Here's the layout I would suggest for your package pythontex:
doc/
+-- latex/
+-- pythontex/
+-- pythontex.pdf
+-- README
scripts/
+-- pythontex/
+-- pythontex.bat
+-- pythontex.py
+-- pythontex_types.py
+-- pythontex_utils.py
source/
+-- latex/
+-- pythontex/
+-- pythontex.dtx
tex/
+-- latex/
+-- pythontex/
+-- pythontex.sty
You should include all package files in the archive, not just the source files (e.g., not only .dtx, but also the .sty file derived from it). You should also include a short and clear README file specifying the purpose of the package, its license (needs to be free to include in TL), its contents (files and their purpose) and any other requirements needed to install and use the package (e.g., external dependencies like Python).
Executable scripts
Directories with executables (i.e., those added to PATH) are not included in TDS specification, but as a package author you don't need to worry about that. Just put your scripts under scripts/<package name> and make clear in the package README, which script is the main program to be executed. TeX distros will then add a symlink (TL on Unix) or a launching wrapper (win32, TL and MiKTeX) in the bin directory.
Whether to include a wrapper for launching the script is up to you. In principle, this is not needed nowadays for TeX Live and MiKTeX - both have their own, specialized wrappers for this purpose. However, some users may need to install your package directly from CTAN (e.g., to use with older TL version), so adding at least a .bat wrapper for Windows (see example below) may be nice. For Unix just start your main script with #!/usr/bin/env python (for system portability /usr/bin/env is recommended over hardcoding interpreter's absolute path).
For windows I can suggest the following wrapper (if saved as pythontex.bat it will execute pythontex.py script).
@echo off
setlocal enableextensions
rem assuming the main script is in the same directory
if not exist "%~dpn0.py" (
echo %~nx0: main script "%~dpn0.py" not found>&2
exit /b 1
)
rem check if interpreter is on the PATH
for %%I in (python.exe) do set "PYTHONEXE=%%~$PATH:I"
if not defined PYTHONEXE (
echo %~nx0: Python interpreter not installed or not on the PATH>&2
exit /b 1
)
"%PYTHONEXE%" "%~dpn0.py" %*
As I mentioned, TeX Live and MiKTeX use their own methods of launching scripts, though I'm only familiar with TL's side of things. TeX Live uses runscript.tlu utility for this and users can make use of it also for their own custom or manually installed scripts. This can be also used by package authors for testing, e.g., you could test if your .tds.zip works correctly. For details see the output of runscript -h (add -v switch to learn all the gory details of the actual implementation). Here's an excerpt from it:
The following script types and their file extensions are currently
supported and searched in that order:
Lua (.tlu;.texlua;.lua) -- included
Perl (.pl) -- included
Ruby (.rb) -- requires installation
Python (.py) -- requires installation
Tcl (.tcl) -- requires installation
Java (.jar) -- requires installation
VBScript (.vbs) -- part of Windows
JScript (.js) -- part of Windows
Batch (.bat;.cmd) -- part of Windows
Finally, Unix-style extensionless scripts are searched as last and
the interpreter program is established based on the she-bang (#!)
specification on the very first line of the script. This can be
an arbitrary program but it must be present on the search path.
It is recommended to write new utilities in Lua, if only possible, since Lua interpreter is now available out of the box on all platforms thanks to LuaTeX. A close second is Perl, which is shipped with TL on win32. Anything else has to be installed separately on Windows.
Finding script/package resources
Complex scripts might be spread over multiple files and there is no silver bullet solution to how to locate such files. The standard way of finding files in TeX Live (which now works in MiKTeX too) is to use Kpathsea and its kpsewhich utility, e.g., kpsewhich -format texmfscripts pythontex_utils.py will output the full path to pythontex_utils.py if it finds it in scripts subdirectory under one of the TEXMF trees. In LuaTeX, Kpathsea library is built-in and can be accessed directly. There might be some other, perhaps better ways, which are specific to Python, Perl, etc., but this should be asked elsewhere.
Best Answer
If you only have the hard copy version, you could also try using the Mathpix Android or iOS apps to take a picture of the documents and it will render the LaTeX. You can then export the LaTeX. Try it out and see if that works any better for you!