Headphones produce better sound quality due to their larger drivers. It's better to use them instead of in-ears. For $120, you can get an entry level Grado SR-60 which is just about the word Amazing can describe.
If you're going for in-ears, go get those custom moulds. They cut out external sound down to really low low low levels. Without them, I'd try not to keep them stuck into my ears for long periods of time due to the imbalance of air pressure within the ear canal.
It's nothing surprising that the sound gets better with more usage. As time goes by, you'll sense that the majority of the phones do not sound too sharp or piercing. Perhaps that's what they meant by mellowing down. However, the bass should loosen up enough to give that Ooomph that you might be missing initially.
There's nothing really wrong with cheap phones. As long as the thing meets up to your expectation of sound, there's not really much to drool over. They are like camera lenses, the higher ends have better clarity and quality but do you really need them?
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Jaben @ Adelphi, Hung Brothers @ Sim Lim and Stereo Electronics @ Woodlands are 3 places I'd recommend. They have a wide range that you try out. Have a budget, go there and find one that fits you comfortably and that you enjoy listening through those phones. Remember to bring your audio player. Meanwhile, I'm searching for Future Sonics FS-1.
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Orpheus. It's meant to be listened to at home. The sound is amazing. It's like the Lamborghini of cars. Why would people get a Lambo when they can get a cheaper car that gets you there? Like the Cherry QQ? The answer is simple. Quality.
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For those audio freaks out there, I suggest a gathering one day. We all meet up and share our stuffs with one another. Just don't forget to bring the alcohol swabs. I'll be bringing my entire rig there if anyone's interested.
