capnal,
What's great about the KL3 is not what it is in stock form, but what it can be.
In its stock form, you get a decent amount of light and a long runtime, but as you have seen the color of the light and the beam leave a lot to be desired.
If you are thinking about getting a KL3, you have to see it for what it can be. After all, there are very few commercially available LED lights that can't stand some improvement. Some more than others.
The beauty of the KL3 is its build quality, mass, and surface area. What all of this translates into is a workhorse outdoors light.
You mentioned cost. Consider this. You could pick up a used, in new condition KL3 for about $40-$45. Throw another $60 to $80 on it modding it. At the most you've spent $125. That's KL4 price range and the modded KL3 will STOMP the crap out of any KL4.
What's really great about the KL3 is its ability to dissipate heat. What this means is that you could ramp your KL3 up to over 1A and never have to worry about heat issues.
On the other hand, you could leave the circuit alone and just put a nice emitter and reflector in it and have a really long run light.
What you have to remember about LED lights is that they're performance is largely dependent upon the reflector/optic that is used. Besides, going with a nice Lux III emitter might get you a few more lumens.
Scroll down in this thread and look for the pics. There's a pic of the KL3 running a 27mm reflector with a Lux III in low mode. Just to give you an idea.
KL3 Link