I don't think Grado lost or gained any reputation, but I think they have been eclipsed in the last decade by newer and more conventional flavor-of-the-month products from other companies (Audio-Technica, HiFiMan, Audez'e, Denon, etc). What I mean by conventional is basically aesthetic - there's an idea of what a "headphone" looks like (and for most people Grado is not it). I'm not saying any of the new products are somehow worse or better, but there's more (high-end) options than Grado, Sennheiser, Sony, Koss, and STAX in 2012. As far as Grado taking a "bad rap" - they're fairly polarizing; you either love them to death or you can't wait to see them go (evidenced by the very contrary reviews). I think comfort is a factor there. Compare this to, for example, the Denon AH-D2000 which will fit most heads, has a "fun" sound that pleases most people (especially first-time buyers), is reasonably comfortable, and looks "normal." The debate over build-quality has always puzzled me; every Grado I've ever held feels very well put together; Denon, some Ultrasones, and some Sennheisers by contrast feel like they might fall to pieces just in normal use after a few days. And of course someone can take a shot at my beloved ESP/950 if they'd like.
Personally I don't like Grado headphones - I've tried most of them, and none of them have ever really "clicked" for me; they either cost more than I believe they should (GS-1000), or aren't comfortable (SR-325i). The sound is perfectly fine though, and I do believe they're "on the level" with the competition. I can really see how they would "click" for some people though.
And I didn't read all 38 pages, I read the first and last page.
