LCD-3 retails for just under $2,000, not $3,200, but yes, they certainly do blow them out of the water. I also consider the K7XX to be $350-400 headphones because of the similarities they share with their AKG brethren.
For 10x the price, maybe not. Depends on what your definition of "worth the price" is. When you start out in head-fi, you always say to yourself that you'll never spend X on Y headphones, until you do. I went from stock buds, to Skullcandy Ink'd, to Head-Direct RE2 with a FiiO e3, to Etymotic ER4; then bought Grado HF2 when they were originally released; and now the K7XX just to try them out. After listening to the same music on my Magnepan speakers and then immediately afterward on the K7XX, I was extremely disappointed.
Factoring out speakers' inherent advantages over headphones, the fact is that they just don't sound very good to my ear. Instruments don't sound like instruments, the treble is wonky, and the sound is veiled. So to approach the timbre and sound quality that is similar to my speaker setup, it probably is "worth the price" for me to consider headphones like the Audeze and other similarly priced headphones. Listening to the same track A/B style at similar volume between the K7XX and the LCD2 or -3 was an eye-opening experience for me.
Honestly, the only real advantage the K7XX has over my HF2 is the comfort and the cable length. They are very difficult to drive and it boggles my mind how people are using them with a portable player or phone. They sounded awful through my iPad. My Peachtree Nova125 pushes a little over 1W at 32ohms, and the headphones still don't sound great. It was marginally better through the Hegel H160. Admittedly, I haven't heard them through any of the recent high-power/current amps (Ragnarok, 430A, Violectric, etc.). Maybe others could chime in there.
The fact is, the K7XX is a very comfortable, lower mid-fi headphone sold at an incredible price that require a beast of an amplifier to sound their best. Nothing more, nothing less.