I used to hear this too, but I wonder how much less it is. Maybe it's just closer to the Annie's presentation, since it has flat pads. Obviously a step-down model will/ought to have a step-down in audio refinement, but with AKG I don't know... The "flagships" have different prices, but mostly the same technical quality and refinement with just a few tweaks to the FR signature.
The front page review for the K702 vs K612 suggests that they're pretty close, with the K612 still having above-average soundstage (even to the Hd600) and a rounder soundstage with the flat pads, like the Annie's flat pads.
Also, I just realized I'm now 27. Woot woot wheeooto!