Ans 1: In short, very good, but not flawless. It definitely has a good midrange, but IMO, it doesn't have the best integration of the mids, upper mids and highs to do full justice to woodwinds and strings. It is a bit lean sounding at low volumes and sounds lively at higher volumes. Get the K702 and the ALO audio cable, which is known to further improve upon the K702's sound. It has enough bass for orchestral classical and its bass control is impeccable.
I used them and really liked them. But sold them off cause I moved away from headphones. Darn, a year later I will be moving back to headphones now. I got them from Singapore for 30k. Audiopeople didn't have it that time and were charging the around 28k for v3. Let me know if you need any more details.