The KLE500 has a hardcore little fan club on this site. Personally, I think it's a fantastic bike, but I haven't ridden the versys, so I can't compare. I have ridden the ER6-n which has the same engine and i have to say that it's a very good engine with a resonable amount of poke, but out of the two, the KLE engine is older and more reliable and is used on two other very popular bikes, namely the ER5 and the GPZ500, so worldwide spares availability would probably be better. On balance, I'd guess that the versys is a lot better on the road. Also, having 17" fronts would probably make life a lot easier tyre-wise. 21"s are murder for finding road tyres.
"On that? You're nuts!" - My cousin's boyfriend
Current Bikes - Kawasaki KLE500 '05 (May 06)
Previous Bikes - Hyosung GF125 (Oct 05 to May 06)