I really like mine. I don't have the K701, but I believe that the Solo 2004 was made with the Senn HD600 and HD650 in mind. It also drives K501 fairly well, based on a post from a ways back. Search on "501" and "solo". The K701 may also shine?
I have an okay source, so I'm not sure what extras the Solo brings to the table anymore (been using this set up for a few years). But what I hear from the Senns is excellent balance across the frequency range...highs, mids and lows are all present. Bass from my combo is great, perfect for trance music. Soundstaging is wide, high, and reasonably deep (Z axis), although I'm sure better amps (and balanced) would present a more lush soundstage. Separation and detail has been improved with the addition of the ALO cable two weeks ago, even though I thought there was nothing wrong with the Zu Mobius (which is broken).
Overall I think punch, detail, dynamics are the key characteristics of the Solo. I wouldn't call it transparent, exactly. More to the point, it delivers sound in all the right ways. Apparently the PSU1 has been upgraded since I bought mine....not sure what the difference is. Since I'm happy with my unit as it is, I'll save the money for CDs and a balanced rig at some point in the future.
A secondhand Solo + PSU1 would be a bargain. At its retail price point, it probably performs up to the market standard. For example, the Linear Black Cube, from what I've read, presents better ambient detail, but does not have the punch of the Solo. You should be able to find that forum post or review online too.