That sucks. My 225 have been going strong for months.
The E9 is a poor match due to it's relatively high output impedance (10) which puts Grados (32) at only a 3x difference - the rule of thumb is an 8 to 10X difference, in order to allow for better damping and control of the bass (which would explain some of the sound quality issues you mentioned) - just use the E7, or frankly, nothing. Grados are easy to drive.
Grado has an excellent warranty and will fix just about anything that's been done to a pair. I don't think you need to give up on them entirely, personally. It sounds like they were defective and should be fixed or replaced, before you pass judgement on them as a whole.
But I can understand being frustrated by the whole experience and just wanting to move on.
Good luck, with whatever you choose to do.
Edited by liamstrain - 1/18/12 at 10:35pm