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I don't find the Etymotics to be overkill for anything- I use them for two reasons:
1) superb sound quality
2) isolation <- this cannot be overstated
I think they make anything sound better, even when it's a crazy distorted, noisy source. I thought I'd regret the purchase given the price, but after 9 months they still give me a perma-smile. Yeah, well sorry to blather on like that.
I don't have a home rig yet, but if I do it will consist of my current sound card and a decent quality headphone amp. My dream semi-portable would be the iHP hooked up to a DAC and amplifier....
The "high-end" cans I've heard are 280s, 580s, shure e3, and my 4p. I would personally need an anechoic chamber to really enjoy the 580s, the e3 sounded dull, but better for pop music than the 4p. Just my opinion of course. I'm not sure the Axim has enough juice to drive higher impedance cans, but that will definitely reduce hiss. I have my own high impedance dongle and use it for cheap sound cards to reduce the hiss.
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