I originally purchased the LS-26 mated to a Ref 110 some 7 years ago. After about a year, I decided to demo the Ref 3 and after trying out for a few days in my system, I traded in my LS-26 towards a new Ref 3, which I still own today. What's the difference? The Ref 3 has more accurate/natural timbre. It's more dynamic and has better extension at either end of the frequency spectrum. It's more spatially holographic. It just did all the things that ARC is known for (midrange see-through resolution, tonal neutrality, 3d staging/imaging, etc...) and boosted those qualities. So the LS-26 has all these traits. The Ref 3 just delivers more of them and when you add it all up, it delivers a more natural and believable sound. Clearly the Ref 5SE has taken it to the next level, and, of course the Ref 40th Anniv and Ref 10 are at a different level altogether.
I find with ARC you get more of the same traits as you move up the line consistent (generally speaking) with the price differential.