Both this and the continued mocking of Beats are a good example of how companies ruin their reputation. The original iPod buds were horrid, so people couldn't believe that they could provide good-quality buds with their iDevices. Likewise, the original Beats were horrid-sounding (overlooked by headphone-ignorant journalists who all said "Wow! Music with bass!") and fairly easy to break. Like Skullcandy did, they have a reputation to overcome. Now, because Beats muscled out their original partner, Monster, both companies have gone on to make better headphones than they did before.
Considering Beats has nearly 2/3 of the headphones market and just got acquired by Apple for three-freaking-billion-dollars I don't think they're terribly concerned about having a "ruined reputation".
TBH, the actual reputation (meaning, the perception by the vast majority of people) is that Beats are great headphones but audiophile nerds hate them. It's the equivalent of film snobs yelling about how Avengers was a bad movie while it earns enough money to purchase several medium-sized countries and most people soil themselves over how friggin' awesome it was.