Wow, you are really stretching here. The study is literally called "No correlation between headphone frequency response and retail price" and you make some (possibly) logical conclusions, but the title of your article is totally misleading. The study did NOT conclude "No Correlation Between Price and Sound Quality in Headphones"! It concluded exactly what the title of the paper is called.
The article is better titled: Audioholics concludes No Correlation Between Price and Sound Quality in Headphones, and then you layout your arguments (as you have done).
There is also no evidence that cables matter, DACs matter, high quality amps are any different, or that hi rez is any better than red book. Does the internet cable matter? Does the brand of hard drive in the NAS matter? No. But people continue to soak up the voodoo that vendors sell with nonscientific studies, or even DBT that prove anything! We finally get a little academic rigor here, and you go and jump to non-scientifically proved conclusions!
Does the price of a headphone make it better? of course not. Are the best headphone the most expensive? No (well, yes). Are many of the most expensive headphones better? yes. This is true of anything! The Honda Civic is arguably one of the best cars made, so why do people buy more expensive cars?
I happen to own a few TOTL headphones, and I cannot tell the difference between one DAC and the next. Cables? other than how they look or feel, they all sound the same to me. but I can easily tell the difference between the Utopia and the LCD-4 and the HD800 and the HD650 and the MDR-6 (and many others).
Also, different headphone react differently to amps and volume levels. Distortion levels definitely change at higher volumes on cheaper headphones (and on a few expensive ones) to levels that are discernible.
It's good to have studies, but it's REALLY BAD to have journalistic sensationalism that purposely jumps to conclusions and misrepresents the study. The study shows one thing and your article title says it shows something different. That is purposely misleading.