Maybe sibilance isn't quite what I'm hearing. More a bit too much treble -- or not enough mids or mid-bass -- at high volumes. I admit to being intolerant of much sizzle in treble -- I couldn't listen to HD 800s for more than about 10 minutes at a time -- but I find the Koss just don't like to be as loud as the T 1s or LCD-3s, and it manifests, for me at least, in "s" and cymbal sounds being difficult to listen to for very long at higher decibels... Could break-in make a difference in this area?
Sibilance is specifically that "hissing" "essing" effect - it's usually indicative of poorly recorded material, but some really bad speakers/headphones will produce the effect too (seriously I wouldn't even say my $20 KTX-Pro do it though - I can't think of a headphone offhand that will "add" it to material); what is more common is that you'll get a pair of headphones that will exaggerate it or be aggravated by it (e.g. a lot of Ultrasones).
The ESP/950 are a mid forward, quasi-n-shaped kind of headphone (they aren't really rolled off, but the bass and treble aren't as forward as the mids); I would say they lean more towards "bright" than "dark" and "top-heavy" than "bassy" or "bottom-heavy." But overall I would describe them as lean, warm, mid-forward, and well extended.
As far as break-in goes, I'm not sure how to explain - with my 950s I notice that sometimes they sound bassier/richer and other times not, and the only thing I can attribute it to is room humidity (which fluctuates more than is probably "good" for me (my house dances between ~20% and ~60% fairly regularly - and there isn't much I can do about it)).
I agree that the problem diminishes significantly with a good recording. I have Red Hot Chili Peppers on CD/FLAC and MP3, and the Koss hate the MP3 but are fine with the higher quality sources as long as I don't play them too loudly. The problem really isn't noticeable until I crank the sound up, which I tend to do with rock music (doesn't everybody?).
Hold on. Are we talking about Californication? (even if we aren't, since you mentioned RHCP, I'm going to blame the recording here - you're not really talking about "well done" material). If so, we're talking about one of the worst put together albums of all time, and a MODEL example of sibilance and ringing on a recording (and basically a poster child for everything that is wrong with modern music). The ESP/950 will bring that right to the top warts and all. Try something that's mastered half-coherently, Santana's Supernatural would be an acceptable choice. Or go back in time. Or pick a genre less abused by loudness warring. If you can get a track that has sibilants in it, and there is no "esssing" coming out of them, it's not the cans. And given that you mentioned RHCP, I'm gonna bet you can find such a track if you look around.
Actually, I don't find the T 1s sibilant, though they are certainly hotter in treble than the LCDs. In fact, I think that the ESPs have a similar sound signature to the T-1s, though I find the Beyers meatier, the Koss more "open" or "airy". As a result, I think the Koss are a good fit with classical or small-group jazz type music, and right now I like the Beyers better with rock.
The Koss are certainly "airy" - it's just the nature of ESPs (you can run the bass up pretty heavily before the stators actually over-extend, but it'll never have the same visceral impact of a dynamic driver). As far as playing loud - it really depends on how loud we're talking; the system's theoretical top-end is enough to take your face off, but I know the E/90 itself is relatively insensitive (compared to modern equipment at least).
I also like the physical lightness of the ESPs and their portability. While I won't be carting my other headphone gear around, I anticipate moving the Koss around the house, and even bringing them on road trips. I'm actually considering getting a quality portable player to create a nice rig that I can move around to various rooms and take on trips. Anybody got recommendations on FLAC players that would be a good fit? How about one that doesn't cost too much, like under $150? (Gotta save $ for other toys... Schitt keeps coming out with stuff I think I want... or at least that head-fiers are making me think I want...).
I like my Walkman mp3 player, but it isn't made anymore. You might consider an iDevice with an LOD though - given that the E90 will take both 3.5mm and RCA in, and likes line sources (it'll deal with a variable source, I just don't like multiple volume control set-ups). Or keep in line with the ESP/950's era, and get a CD player.