I think ZH3 actually looks a bit less impressive than some people make it.
Fosi ZH3 = 113dB SiNAD at 4Vrms (HP out), and 2.5W at 33Ohm (doesn't clip), Line Input (questionable input level/0.775Vrms)
Fiio K7 = 115dB SiNAD at 4Vrms (HP Out), 2.8W at 32Ohm (clips), Line Input (2Vrms)
However the K7 has also much more power into high impendance loads.
Fosi ZH3 = 273mW at 300Ohm
FiiO K7 = 500mW at 300Ohm
Rough values taken from Wolf's measurements at L7AudioLab
https://www.l7audiolab.com/f/fiio-k7/
Dashboard went up to 13.3Vrms with 107dB SiNAD
The only real advantages ZH3 have I can see are XLR Line Out, and perhaps the tone control. So unless those are required for someone, or the price is considerably lower than $200 of K7 ($160 for ZH3 as some reported certainly would make it viable), then I would just go for the true and tested FiiO K7.
For me the big issue would be the 0.775Vrms input, that is the line level standard found in some older days, if you look at Amirm's re-review of Behringer UM204HD, you will even find a hint it is 0.775Vrms design overdriven to output more as the performance drops sharply after ~0.780Vrms. If that is the input sensitivity of ZH3 then that is not just a bother, but a question - is that preamplified before being fed to the output stage or will the Headphone Out output power be reduced?
Imo that is a very important - what is the difference between internal USB DAC's and Line Input's power output and performance in ZH3?