The KSC-35, in comparison to the first "good" headphones I got, the HD-595. It strongly confirmed for me that I hated (and still hate) the muffled sound of the HD-595. The muffled sound is due to the fit on my head. Anyway, the KSC-35 sounded much better to me.
Since then, no headphones have hit the spot. The K701 is the best headphone I have (everything else I have sounds like total crap in comparison), but, all in all, it is just another mediocre midrange headphone, with a tremendous amount of flaws. Nope, I have not heard anything higher-end - I am going with what has been said about the headphone here, and I, personally, can imagine something A LOT better - I am sure the HP-2, for instance, totally trashes the K701, making it sound like an absolutely lo-fi piece of crap.
Anyway, the flaws of the K701 are: the inability to recreate any instrument accurately (from the multitude of comments on Head-Fi from people who know what instruments sound like); the flat (not in the sense of neutrality), un-dynamic (sic) sound (which is why these headphones "lack emotion"); the poorly textured bass; the obvious treble spike; and the poor soundstage (3-blob and non-enveloping) and imaging.