I don't know about you, but when I build a computer, i do so with longevity in mind. I usually upgrade the graphics hardware at some point in it's operational life, but the core components stay the same, barring any mishap.
It's all about price vs. performance. The Core i5 & i3 are aimed at mainstream / budget markets, and a lot of people will build systems around them because the money they save they can put toward a better graphics card, or cards.
The Core-i7 is undoubtedly a better processor than the Core-i5, both for gaming and general use. Whether it is better for YOU depends on how much of your budget is left over for the remainder of the system.
But bear this in mind, the boards for the Core series of CPU's can only take other CPU's in that series. So upgrading a core-i5 to a Core-i7 later on will mandate a replacement motherboard as well as the processor.
Replacing these parts later is a lot more difficult than the graphics card, so I'd say if gaming is not your only usage, buy a Core-i7 and get a decent graphics card when you can afford to. It may save you headaches in the long term.
Otherwise, if it's too expensive for you to consider, get the Core-i5 or even the Phenom and mate it with a powerful graphics card.
Regards.
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