I can confirm that.
Most of the issues I had when using my recabled/balanced K702 disappeared over some weeks of using the MDAC with a different kind of headphones, could the initial "run-in" / "burn-in" take that long? My first listen to the upgraded MDAC was after good 5-6 hours of playback - perhaps it wasn't enough.
Needless to say, the recabled AKG K702 are not really forgiving when it comes to bad/mediocre/decent recordings, which I have lots of - it takes quite a lot of effort to fill the L-R "range" so that it sounds like a room with musicians. The lack of reflections and the extent of instrument separation really got me there. However that's a good thing when it comes to a DAC, right?
I borrowed older Sennheiser HD600 headphones from a friend and the sound is indeed more "pleasant", so I guess it was just me having headphone problems with the upgraded MDAC.
Sorry for the false alarm.