I've gotta agree, it sounds quite impressively good right out of the headphone jack. My current headphones (W5000 drivers) sound very nice.
I actually bought a Fiio e10 and at first thought it sounded a bit more detailed and it sounded like it was layering like I first remember the W5000 doing. Then I switched back and noticed that all the detail was there, as was the layering. There was nothing missing compared to the e10, but the soundstage was wider (sounded more like a stage, whereas the e10 sounded like I was pointed at a corner of a room where the band was playing, definitely sounded more left/right imaged). In short, the TitaniumHD was smoother and more natural, and the soundscape was more coherent. It seems to me that the W5000 images oddly on some sources, where the layering is more apparent. It did the same thing straight out of the integrated audio on a couple of PCs that I had. With better sources/amps it images just as well but sounds more coherent which kinda tricks you into not noticing the layering as much.
I have to admit I also was wanting to try out the bass boost of the e10 and while I enjoyed it, it definitely wasn't quite what I'd like (boost started too high in the frequency spectrum). I played around in the Creative panel (finally actually switched to the gaming panel) and, the bass boost there is preferable to my ears. For one you can adjust it (0-12dB and Cutoff, which with headphones doesn't actually cutoff it actually lets you choose where to focus the boost at). I've been putting about a 5dB boost centered around 50Hz. I'm not noticing any difference in sound compared to the Creation panel with everything turned off and I'm not hearing any distortion from the bass boost (but the boost definitely helps the visceral feel of the sub-bass). Its definitely a step up from the EQ.
It might not have a dedicated headphone amp circuit, but my personal experience seems to indicate it does pretty well (I have a hunch it'd be better than the Essence cards with low impedance headphones). Interesting to hear it works well with the HD-650s. I'm not shocked though, as I think they're a good headphone that can really show your upper chain, and I think the TitaniumHD is a pretty good source and the "amp" works more like a clean volume control for that versus a typical amp (which personally is what I think is actually best for a lot of headphones; just starting with a cleaner source helps a lot, and I'd guess it amps as well or better than many DAPs).
It reminds me a lot of the Sansa players. Perhaps not spectacular, but competent, smooth, and somehow just kinda "right".