Excellent review. After a few months of ownership of the HM-801, I'm definitely very happy. I'll share my experiences with it, because I have a feeling I'm not alone with what I went through.
I was surprised and a bit disappointed when I first got the HM-801 to see how poor the volume control was with my JH16s. In addition, there was a constant clicking noise audible in quiet passages of music when playing off the SD card, and whenever I touched the top part of the player, I would hear a ringing noise.
I had read reports of there being a new version of the ST card with better volume control, so I contacted Fang and he graciously offered to replace my player. After sending away the HM-801, I spent a few confusing weeks dealing with customer service to find out what was happening. During that time, Head-Direct announced that it would replace all 1.0 (stock) cards with a new version 2.0 card, which was intended to address at least some of the problems I (and I'm sure others) had with the ST 1.0 card. The 2.0 card fixed the clicking noise, but channel imbalance was still a problem, the ringing noise was still clearly audible, and the volume floor was still too high out of the headphone out with my JH16s (not as much of an issue with my IE8s).
After seeing no other solution, I bought the GAME amp a few weeks ago, and the volume control is definitely improved to the point where it's tolerable in quiet environments. I'd still like a little more volume range; I'm not sure if Fang owns a pair of JH13/16, but it doesn't seem like the HM-801 was designed or tested with IEMS that are this sensitive or isolate quite this much. Moreover, I still experience the ringing noise whenever I touch the top part of the player--it seems to be some kind of frequency interference occurring near the amp card.
I think, ideally, Head-Direct should offer the HM-801 with the option to choose which amp card you want, based on whether you mostly plan to use it with full-size headphones or custom IEMs. The volume control issue is a non-factor if you plan to use the line-out to an external amp, but I suspect many of us are buying the HM-801 as an all-in-one solution for portability (and cost-effectiveness).
As for the firmware, there are well-documented complaints about the lack of gapless playback, playlists, and (my biggest issue) the lack of ability to navigate by folder (MSC mode?), which is very useful for songs which aren't ID tagged or if you want to make your own collection or playlist of music by putting songs in a particular folder. But the "My Favorites" option is a tolerable stand-in for a custom playlist option. And I recently discovered that you can listen to songs which aren't ID tagged together with other songs in the folder they're in, by playing a song in the folder, turning the player off and back on, pressing the (top left) "Back" button from the main menu, then pressing the (middle) "Play" button. When doing this, rather than continue to play all songs on the player randomly (since the only way to play a non-tagged song is by finding it randomly in "Tracks" mode or naming it something you can easily find), the HM-801 will only play songs in the folder where the current song is.
I also wish the HM-801 had more on-board memory space. I realize that the high-quality components take up a lot of physical space, leaving little room for on-board memory, but I'd rather have more capacity without having to swap SD cards--I like having a huge collection of diverse music which I can shuffle through. Finally, the player gets disturbingly hot, especially when plugged into the charger but even when used portably. This can be a bit of an annoyance if you've stuffed the HM-801 into your pocket on a hot day.
Alright, now that I've gotten my complaints with the HM-801 out of the way (phew), I'll go into why I love this thing so much. One feature that isn't widely discussed is its ability to serve as a USB DAC for your computer. To preserve your battery for portable use, you can simply remove the battery and power the player in DAC mode with the wall charger. The sound quality I get from the HM-801 as a USB DAC with my Denon D2000s and amped with the RSA Protector was a pleasant surprise, and it easily rivals (if not surpasses) the other dedicated USB DAC I use to have, the iBasso D4.
When it's time to leave the house, I can simply unplug the HM-801, pop in a battery, and my desktop DAC is instantly converted into an immensely enjoyable portable player. The sound quality with the HM-801 and my JH16s just isn't comparable to any other portable player I've ever heard; the sense of space, the power and realism in the sound, and the level of micro-detail are stunning. I used to think the Cowon S9 was the best that portable audio could sound. I still like the S9, but in comparison to the HM-801, it sounds thin, flat and 2-dimensional.
I realize that I've spent most of this space pointing out the HM-801's flaws and some of the annoyances I've had to deal with, but that's only because the player's praises have been sung quite thoroughly already. I think prospective buyers should hear some of the drawbacks--beyond the flaws noted in a certain interesting, but for me ultimately useless, discussion about frequency graphs and quantitative tests. The HM-801 seems to have garnered quite a bit of skepticism and even venomous ridicule, perhaps because of its (by mass-market standards) outrageous price tag, perhaps because of its odd size and shape, or perhaps because of the seemingly unrealistic raves it has received from some owners.
But Fang has achieved something remarkable with the HM-801. If you can live with the drawbacks I and others have pointed out, I think the HM-801's versatility and sound quality actually make it a reasonable, if not outstanding, value proposition.