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That still sounds like a total waste of money to me.
Why not consider the HE-5? From every review I've read, it's like a K701/K702 on steroids - better in every aspect of sound quality. I know some consider it to be a big upgrade; the next logical step up for K701 owners - comparable with the Sennheiser HD 800. And no amp is going to make the K701/2 surpass an adequately amp'ed HE-5.
Like I said, there's an HE-5 + amp combo for sale right now here on Head-Fi (I have no connection to the seller), within your budget.
^^ Chill out dude... the HE-5 have smaller, or the same sound stage as the 650 : ( No bass or subass and the highs/treble are on amphetamines, AND you'll need a heavy duty amp to drive them .
Like I said, I've never heard them - I just think they're worthy of consideration. And, more specifically, I think that a $350 amp with a $250 pair of headphones is an utter, utter waste of cash. But that's just my opinion. Well, my opinion that correlates both with my experiences and the blind tests of others.
No bass or "subass"? That's definitely not what I've read, although I have certainly read that the highs are dominating. Frequency response curves support that:
Based on reviews and recommendations I almost got the HE-5 myself, before settling on the HD 600 instead - as you said, the HE-5 need much more power (current, really). I've auditioned the K701 extensively and it just doesn't impress me that much. New ear pads on my HD 600 have brought the soundstaging to almost the same level (they were very worn in before, the drivers were much closer to my ears) - actually, comparing them with crossfeed I've found the HD 600's soundstage to be more to my liking. The level of bass with the K701 never has satisfied me either.
Anyway, the K701 is not for me (another problem being durability, because the HD 600 lives in my backpack) - and actually, I don't think the HE-5 would be either. The LCD-2 is probably more my style - I'm not that big of a fan of the HD 800 or T1, having spent time with them.
Anyway, my main point is that the HE-5 is definitely worth considering.