I don't have the LTD edition though I cannot picture dramatic differences (I could be wrong). SE535 is ok but nothing to write home about compared to what's on the market today in 2015. They have a Shure house sound to them and they're detailed enough for something made in 2010, I can understand your friend becoming attached to them with some form of bragging rights (as they tend to do that to you) but some music just doesn't flow naturally with that IEM. Like its straining or profoundly confused during busy passages. Don't get me wrong though, they're decent. (there's that strong Shure bond coming out in me again)
Yeah, I agree. The SE535 is a good IEM in its own right, just not something that is near-flagship worthy in this present age. It is grossly overpriced as well, but of course, Shure would be silly to lower its MSRP. The last time I auditioned the SE535 was in January, and I found that the midrange was a bit too prominent for my liking. Everything sounded a little congested at times, and micro detail was lacking.
Still, if anyone's on the market for a smooth, warm IEM that reproduces good vocals with a lush tone, the SE535 is certainly one of the better buys, just not at its current price tag.