I guess I am just a bad objectivist (I am not a true objectivist anyway.) Anyway though, the part about the K701 is completely correct. Even worse, if that is the logic people are making when buying/amping the K701, then they should be introducing a fair bit of distortion to it by losing too much dampening factor o.O Really though, what you say there applies to a LOT of different headphones though I guess. It is like people buying all tube amps to power the HD800 because it takes away some detail without really compromising the music.
Have you been talking to Steve Guttenberg? I don't know where this idea started that objectivists strive for a ruler-flat frequency response up to the headphones. The only way that would make sense would be with speakers, I guess. I'm not saying some objectivists don't want flatness all over the chain, I'm saying that's a personal preference and has nothing to do with being an objectivist.
The main idea, at least my interpretation of it, of objectivism is to have a ruler-flat chain up to the amp. When you reach the transducer, the last link in the chain, feel free to get what best suits your needs, and then alter it a bit if you want with an EQ, crossfeed, whatever. This seems rational, at least much more than buying amps in the hopes that their flaws will cancel out the headphones' flaws. It's also much cheaper, obviously. Very often do I see things like "the K701 just needs an amp to drive it to it's full potential" which usually means huge output impedance. People don't want to accept that it's a bright pair of headphones, they believe it just takes an inversely-flawed amp to "get it to shine".