I wouldn't call the T1s overwhelmingly bright at all. Have you heard the HD800s, AT cans or Grados? That's bright. Variance and ringing issues are problems that most headphones have as well. To me the T1 has the best tonal balance I've ever heard in a pair of headphones.
Please do tell which $700 headphones objectively outperform the T1s.
Well, the T1 are MSRP of $1300.
And do you mean things like FR, square wave response, CSD (impulse response graph) when you mean "objectively" outperform?
If yes, there are headphones that do this, sure. But, please note that I have not heard these. i'm just going by measurements of performance. The T1 don't objectively perform that great.
beyer T1 FR and CSD:
http://www.changstar.com/index.php/topic,66.0.html
note not just the FR but also the longish ringing duration at those peaks in the CSD. it makes treble more harsh.
innerfidelity pdf link of T1
http://www.innerfidelity.com/images/BeyerdynamicT1SN3964.pdf
relatively high distortion for bass frequencies and a weird distortion spike around 1K, too. and the treble peaks in the FR do show up here, as well.
As one example of a better performer based on measurements, the HE-500 have faster decay, less distortion and less treble ringing. $700
http://www.innerfidelity.com/images/HiFiMANHE500.pdf
http://www.changstar.com/index.php/topic,101.0.html
Another is the Paradox mod done on the Fostex T50RP super clean and neutral FR. $500.
http://www.changstar.com/index.php/topic,41.0.html
http://www.innerfidelity.com/images/FostexT50RPDIYModifiedLFFParadox.pdf
Or the Stax SR407 with a used, good quality electrostatic amp.
Anyway, a lot of writing to say that the T1 are not the best measuring headphones out there. But they apparently sound really good to a lot of people. But it's not inconceivable that they might sound harsh to others, looking at the data.
I'm curious to try them to hear what they do but I'm worried about them sounding bright to my ears based on my experience with the PS1000 and HD800.