Good points, except it's already been happening for a while now. Tons of AKG and other products have moved production to China and for the most part it's been a smooth transition. Politics aside, there's little to worry about in terms of quality.
For what it's worth, I've had little to no issues with DSD playback. Mostly using a MacBook with Audirvana. Apparently some people have a different experience, but that's no guarantee you will have trouble.
Maybe they changed at some point. I bought the K702 at launch and that's how they all were at the time. Here are some reviews which mention the color being very dark blue: http://www.cnet.com/news/akg-k-702-headphones-that-dont-sound-like-headphones/ http://www.6moons.com/audioreviews/akg2/702.html http://hearphones.net/akg-k702-headphones-review/ So I know I'm not crazy! Well, at least not based on this.... AKG has been making them in China for a while now. Austria...
That's what I've tried so far, with no luck. I had two old 1GB cards laying around (hey, they cost $50 each back in the day, I'm keeping them!) and I tried both, freshly formatted to FAT32, no unzip.... I'll have to keep trying.