On the THD, correct me if Im wrong, but as far as I see it, its something that it rises exponential if you calculate the THD in all the audio chain.
What Im trying to say is, that while 1% THD total does not sound too bad in a headphone, if you have more in the audio track, the DAC the amp, and you add some noise into the mix, you can get some really nasty sounds.
Lets assume that a particular headphone is not great at the 4Khz mark.
If the THD of the audio track dac and amp does not touch that mark, the damage will be limited (in terms of audio quality) to the headphone THD.
However, what if the audio track has a strong 4Khz note that repeats from time to time, the DAC interprets it slightly wrong (sigma-delta), the amp makes it louder and distors it a bit more, and then it gets to he HP?
Well, thats a song you wont "like" on the HP as far as I am concerned.
Since no amp, dac and audio track has stable THD all across the 20hz-20Khz audio spectrum, its quite important to know as much about measurements as possible in my book.
Unless I am reading this wrong (correct me if that is the case).
So while I agree that in principle you wont hear THD much, its not the same to have THD where it wont hurt, and where its already hurting.