
The hobby will be ruined only for those people who can't enjoy what they have in the knowledge that there might be something better out there. But after you've heard enough gear, you know price has very little to do with performance after a certain point. I owned the ES1 + HE90, and am infintely happier now with the more modest rig I have. In fact, having more high quality choices out there will only drive innovation as other companies try to create something better at a lower price point. The presence of million dollar speakers hasn't ruined the hobby either.
Whether headphones are worth $5,000 or $10,000 or even $1,000 is a completely different topic. I am now down to about 2% headphone listening because I enjoy listening to my speaker rigs so much than to any headphones. I remember when I started here, people kept talking about how headphones provide a much better value, and I bought into that without testing that proposition. It took me 7 years to realize how wrong it is (for me, my ears, etc.). My bookshelf speakers cost me $1100 (Usher BE-718 bought locally on Audiogon) and sound infinitely better to me than any headphone I've ever heard, including the HE90, Sony Qualia, Omega II, etc., even when driven by a cheap integrated like a Musical Fidelity A1 ($800 on Audiogon).
BBM. I doubt that the rise in the top end of the hobby will ruin it -- too big and spread too far by now. What I've noticed since I began with a HeadRoom Little and HD650s lo those many years ago is that the willingness to spend big on the flagships seems to have squeezed the middle tier of headphones and amps. Back in the day the HD6xx and Grado RS1s were the standard recommendations for aspiring headphiles. Now I read more and more posts that advise skipping directly to HD800/LCDX territory, which is instantly a very different value proposition. It also cuts the journey short, erases the pleasure of the incremental improvement and means one doesn't have to learn much along the way. I think that's a bit of a shame.
The excess is always there, because audiophiles, like gearheads generally, include a segment that is a special breed of geek, for whom the bragging rights of top-of-the-tree performance (and, of course, the musical satisfaction) makes pursuing the nth degree worthwhile, I find it exhausting, and I've found over the last year that keeping things more or less the same is a distinct relief. But I'd say the major change is the rise in the headfi profile and the attention now being paid to this niche by manufacturers. The choice, at least, is nice.
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