Agreed, mostly.
Basically, assume the i5-6500 can't be overclocked. Then compare to an overclocked i5-6600K.
We'll use the value of (Max Turbo - 200MHz) for a system under load. Thus 4.4GHz-3.4GHz = 29.4%
*So the i5-6600K can theoretically process almost 30% faster. In reality, the real-world experience may be lower than this. Some games will see no observable difference.
For a tight budget, this may mean money can be put towards the GPU. You'd want to buy a more expensive cooler for the i5-6600K so you could easily see over a $100 difference for price of CPU and cooler.
(and maybe a cheaper motherboard as well).
So...
It's actually hard to answer the question without considering the big picture. Again, given a weaker budget if this is meant for GAMING I would consider the i5-6500, stock cooler, good-enough motherboard and put the savings towards a better graphics card.