Depends on what you are looking for, what is better sounding to me might not be for you. For me the M1060 would be far behind the HE500 in sound quality but this is just me, and the M1060 I heard was not modded which seems to be a requirement for them to sound decent.
Monoprice Monolith M1060 and M560 Planar Headphones
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givemetacos
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I've asked an owner of both about this and got this reply:
"M1060/HE-500 are just different, as a previous HE-6 owner I find the he-500 to be a tad too similar but worse for my taste(still a good headphone), M1060 is a more laid back audeze like house sound when modded, and I don't find them technically superior or inferior to the he-500 just different flavors."
I have asked a handful of people that have owned both about this comparison and that is pretty much what everyone says. As you can see from the LCD-2 frequency response comparison, the M1060 lines up more with that warmer, smoother Audeze sound. Whereas people usually characterize the HE-500 as on the brighter side of neutral. Here is an M1060 vs HE-500 frequency comparison:
Depending on mods the M1060 can have better bass and a warmer sound but the HE-500 is still technically better.
Libertad
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Been using mine since i got'em original Rev no cracks and still loving the ever living crap out of them 
Brahmsian
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I noticed the HE560 isn't among them. What do you like to listen to with them? The HD700 and HE560 sell for about the same price right now. You prefer the former? Is the HD700 easier to drive?
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Presto
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I got these a few weeks ago. Actually took me a little bit to get used to the sound signature, but after a few days I started to really like them. They are now my daily driver and one of my favorite headphones.
Personally I'd put the HD700 on the same level (or maybe slightly over) the HE400i while the HE560 is definitely a tier up from them. I don't listen much to classical music though so my comment is for general performance.
I'm sure that @DavidA will give you a better answer but I figured that more impressions wouldn't hurt
Pahani
500+ Head-Fier
Haha yep, that was my L700 pair! I got them back JUST in time for the review to come out......
I've been listening to L700 pretty exclusively since I got them back. Even being used to my 2170 system, it seemed to take me a week or more to truly appreciate the L700s; but once you're used to them, just WOW
I threw on my M1060's for about 10 minutes for the first time in about a month just tonight.
My 2170 is better than M1060 (taking into account Neutral vs bass-heavy sound, your preference may vary), enough to be definitely noticeable but not night and day. L700 + 353X is absolutely a night and day comparison to M1060. Jarring is the word I'd use.
Don't take that as a discredit to M1060 though, for the price L700 had BETTER curb stomp M1060!! haha
justin Montagano
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Haha yep, that was my L700 pair! I got them back JUST in time for the review to come out......
I've been listening to L700 pretty exclusively since I got them back. Even being used to my 2170 system, it seemed to take me a week or more to truly appreciate the L700s; but once you're used to them, just WOW
I threw on my M1060's for about 10 minutes for the first time in about a month just tonight.
My 2170 is better than M1060 (taking into account Neutral vs bass-heavy sound, your preference may vary), enough to be definitely noticeable but not night and day. L700 + 353X is absolutely a night and day comparison to M1060. Jarring is the word I'd use.
Don't take that as a discredit to M1060 though, for the price L700 had BETTER curb stomp M1060!! haha
Very true, I don't think anyone expects them to even compete. Out of curiosity are your M1060's stock or have you performed any mods?
Pahani
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My M1060s are modded. Impact Audio MMCX -> XLR cable, Audeze vegan pads, and 3" paper towel mod.
involuntarysoul
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anyone got good Equalizer APO setting for M1060 with stockpads?
I don't have APO but I use another really great EQ program. Do you run with a desktop rig and use Spotify by any chance? If so, I have great settings to my ears for the 1060's
Personally I'd put the HD700 on the same level (or maybe slightly over) the HE400i while the HE560 is definitely a tier up from them. I don't listen much to classical music though so my comment is for general performance.
I'm sure that @DavidA will give you a better answer but I figured that more impressions wouldn't hurt
I replied with a PM since it was getting off topic from the M1060 but if you want to know I can send it to you also, let me know
OldDude04
Headphoneus Supremus
Do you enjoy bass? Because my APO settings for the M1060 are not neutral, lol.
givemetacos
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Alrite guys, @DMS3 TV just released a VERY interesting M1060 video you should all check out. Link here
Basically, he shows how he did a "fuzzor" mod that was briefly discussed earlier in this thread. He removed the stock felt covering the driver (behind the stock ear pads) and cuts out felt strips to cover the metal grates over the driver. He also leaves stock Audeze Vegan pad backing material on before placing it on top of the fuzzor modded drivers. No mods (e.g. paper towel) on the outside foam. He also shows FR measurements before and after the mod, and sure enough it fixes the 5k ringing problem as also shown with @cskippy's method. Another bonus, is that he has a pair of LCD-2's with vegan pads and measured those. The comparison FR is extremely close, very much in line with the FR comparison I provided yesterday that came from Tyll's measurements, except he used stock M1060. He mentioned the treble is cleaner on modded M1060 but detail retrieval is still a little better on LCD-2. That all seems reasonable. And DMS3TV also said in an upcoming video he will do blind listening tests with M1060 vs LCD-2 with multiple people to compare. I have no idea how he is going to deal with the added weight of LCD-2, but it should be fun to see nonetheless.
Damn, I was seriously considering auditioning an LCD-2 and perhaps "upgrading" to one, but after all these FR comparisons showing how similar they are with modded M1060, I am not sure if I can justify the price difference. I might just pick up a Fostex TH-X00 or EMU Teak instead to complement my HD800s and keep the M1060 for gaming.
UPDATE: just spoke to DMS3TV on the Discord. I asked him about why he didn't use paper towel or anything on the rear and he said: "the outer foam facing the grill doesnt make a measurable difference when out. However the point of the fuzzor is to prevent reflections... Dampening the driver with TP or a papertowl seems less productive as you're limiting the frequencies that can pass through."
Also, I spoke to the owner of the LCD-2 that is used in the video. This is a 2.2 pre-fazor. So it does seem like the modded M1060 is more warm and in line with older LCD-2 versions. I know the 2016 version is noted to be a bit more neutral and have added treble.
Basically, he shows how he did a "fuzzor" mod that was briefly discussed earlier in this thread. He removed the stock felt covering the driver (behind the stock ear pads) and cuts out felt strips to cover the metal grates over the driver. He also leaves stock Audeze Vegan pad backing material on before placing it on top of the fuzzor modded drivers. No mods (e.g. paper towel) on the outside foam. He also shows FR measurements before and after the mod, and sure enough it fixes the 5k ringing problem as also shown with @cskippy's method. Another bonus, is that he has a pair of LCD-2's with vegan pads and measured those. The comparison FR is extremely close, very much in line with the FR comparison I provided yesterday that came from Tyll's measurements, except he used stock M1060. He mentioned the treble is cleaner on modded M1060 but detail retrieval is still a little better on LCD-2. That all seems reasonable. And DMS3TV also said in an upcoming video he will do blind listening tests with M1060 vs LCD-2 with multiple people to compare. I have no idea how he is going to deal with the added weight of LCD-2, but it should be fun to see nonetheless.
Damn, I was seriously considering auditioning an LCD-2 and perhaps "upgrading" to one, but after all these FR comparisons showing how similar they are with modded M1060, I am not sure if I can justify the price difference. I might just pick up a Fostex TH-X00 or EMU Teak instead to complement my HD800s and keep the M1060 for gaming.
UPDATE: just spoke to DMS3TV on the Discord. I asked him about why he didn't use paper towel or anything on the rear and he said: "the outer foam facing the grill doesnt make a measurable difference when out. However the point of the fuzzor is to prevent reflections... Dampening the driver with TP or a papertowl seems less productive as you're limiting the frequencies that can pass through."
Also, I spoke to the owner of the LCD-2 that is used in the video. This is a 2.2 pre-fazor. So it does seem like the modded M1060 is more warm and in line with older LCD-2 versions. I know the 2016 version is noted to be a bit more neutral and have added treble.
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