I wouldn't call it terrible but there are definitely areas for improvement. Let's break it down.
CPU:Intel Core i7-4770K 3.5GHz ($329.98 @ OutletPC)
CPU Cooler:Arctic Cooling UCACO-AP11301-BUA01 ($9.98 @ OutletPC)
Motherboard: ASRock Z87 Pro3 ATX LGA1150 ($94.99 @ Newegg)
Memory:A-Data XPG V2 8GB (2 x 4GB) DDR3-1866 Memory ($79.99 @ Newegg)
Storage:Hitachi Deskstar 1TB 3.5" 7200RPM Internal Hard Drive ($99.00 @ Amazon)
Video Card: MSI GeForce GTX 770 2GB Video Card ($319.99 @ NCIX US)
Case: NZXT Guardian 921 RB ($69.99 @ Best Buy)
Power Supply: Antec EarthWatts Platinum 550W 80+ Platinum ($89.99 @ Amazon)
Optical Drive: Asus BC-12B1ST/BLK/B/AS Blu-Ray Reader, DVD/CD Writer ($58.98 @ OutletPC)
Operating System: Microsoft Windows 7 Home Premium SP1 (OEM) (64-bit) ($84.98 @ OutletPC)
Wireless Network Adapter: Asus PCE-N10 802.11b/g/n PCI-Express x1 ($14.98 @ OutletPC)
Total: $1252.85
First, for gaming an i5 will have pretty much the same performance as an i7. There are very few games that actually benefit from HyperThreading. Now if the budget permits an i7, go for it.
Second, the Arctic Cooler you linked isn't designed for overclocking. It would be a horrible choice for any Intel K CPU. It doesn't have good airflow for the heat sink or a large enough heat sink for optimal cooler for the higher CPU frequencies or voltage.
The motherboard is OK. But is has average cooling (heat spreaders on the VRMs) and average power phase design with a 4+1 design. For overclocking, typically the more power phases, the cleaner, cooler and more stable clocks can be achieved.
The memory is ok but unless the OP wants to explore overclocking RAM, there's no need for it. There is no performance difference between 1600 and 2800 RAM.
The only other thing that stands out is the 550 watt Platinum power supply. There's nothing wrong with it other than there's little need for a power supply with a Platinum rating. Most people don't care about that level of efficiency.