That is an understatement. The HD 5XX models always have, and always will be manufactured in China. Now I am not bashing China, but we all know that a product from there will not have the TLC in QC an audiophile headphones deserves. I have not seen how the HD 598 (for example) are made, but I am certain the production line looks line any other in China; You've seen one you've seen them all, basically. The HD 600 and above are made in Germany and Ireland, and I have seen in videos how Sennheiser treats their high-end lines, which is above and beyond what is generally necessary for any given product. As someone who has spend many a year in high tech manufacturing, it bring a smile to my face and tears in my eye with pride seeing this. I can almost guarantee there have been next to zero defective HD 600/650, HD 700, and HD 800/S sold.
Would I pay a few buck more knowing that my headphone has passed a rigorous QC trial, even my HD 598s? You betcha! Hands down without hesitation. But as you said, the intended target consumer is different for both lines, and me thinks Sennheiser would rather pump out and sell literally hundreds of thousand of cheaper made headphones in a shorter period of time than take the extra time to make sure some smart-ass know-it-all audiophile gets a perfect pair of HD 599 for $150 on Amazon.