Yes, it can be seen as hyperbole, but also demonstrates my disappointment with the HD700. Owning several sennheiser cans including the HD650 and the HD800s (my favourite headphone), I tested out the hd700 for a month and could not enjoy it despite my best efforts. Regardless of price, the headphone commits several flaws while being unremarkable in any of its attributes- it's soundstage width is much smaller than the K701, its bass is both unimpressive in distortion characteristics, impact and extension (the he400 easily beats it), the midrange lacks both body and naturalness of the hd650. The upper mids are less linear than the hd650, if you regard the hd650s as being veiled and lacking a bit of clarity, the hd700s will be more so. The only area I could see them as acceptable is imaging, which betters most mid-fi cans.
Now what sets apart the HE-500 for example from the staple , former flagships of yesteryear such as the HD650, K701 and DT880? Lets throw in the he-400 as it plays in the same league as the others and is already mentioned as a point of comparison. The first major improvement that strikes me is the midrange, it has great transparency, vocals sound immediate and lifelike, especially noticeable at low volumes. The mids are richer and thicker than the HD650s, which are one of its key strengths relative to its competition. Male vocals, such as the baritone and bass singers in Claudio Abaddo's Beethoven 9th symphony and the Alexandrov Red Army Choir "Oche Chornaya", are better in both body and clarity. Lastly, the mids are highly linear next to something like the HE400, without dropouts that make female vocals sound withdrawn.
The He-500 sound stage is wide, and combined with its imaging, easily betters the presentation of all of the the other four. It does lack a bit of depth and 3-dimensionality compared to the very best imaging cans but is far from artificially stretched out like the K701. Its well controlled and smooth treble is responsible for much of this. It may not be as linear and well extended as the HD800, but is definitely one of its strong points. You could listen to music with lower dynamic range and and modern mastering at higher volumes without wincing in pain like you would on the dt880 and the K701 while hearing all of the detail. The tonal balance on the HE-500 is close to perfect and better than the HD800s in my mind, making it more versatile, playing all genres well.
In contrast the K701 is biased towards classical and chamber music because it lacks bass, the HD650 doesn't have the width or treble presence for large scale orchestras, the dt880 lacks presence and naturalness in the mids for vocal heavy music and can sound overly bright with electric guitars. The HE 400 is less suited for acoustic music than electronic music due to its v-shaped tonal balance.
The bass on the HE-500, while not being quite as tight as the HE-400, has great texture and body to it. Planar Magnetic bass in general is very tactile; you can feel the skin of the drum and its reverberations after impact. You do not get this sensation on the others. The Mid bass has great impact and slam next to dynamic cans such as the HD650, DT880 and K701. The HE-500 bass has qualities that are better in some ways to the HD800; the HD800 has sharper and more defined upper bass impact and more sub-bass extension and quantity, but loses out in Mid-bass impact and tactility/texture IMO. Neither the HD650, DT880 or K701 even come close to the HE-500s bass performance.
Now lets factor in price. The HE-500 is $699 and beats those four in pretty much all areas. The HD700 is $1000 dollars and does not. Personally I would not pay above $150 dollars for the HD700 as I spent most of the month I had the HD700s listening to the K701s instead and wishing the HD700s could sound as good as them. (Note: I do not like the K701 much, especially as times goes by).