For a gaming build, you always, always, always want to spend your money on the GPU. So there is no doubt that I would go for the 1060.
If you want to get a 1070 or higher, I would want to know what monitor you are playing at. If you are playing at 1080p on a 60hz panel, then there is no reason to get a 1070 or higher. If you are playing on a 144hz panel, then it may make some sense.
The 8350 will get you by for now, but it is a mediocre CPU at best. So I would plan on getting an upgrade in 2018 which will not be cheap as you will need CPU/Mobo/RAM. The Ryzen 1600 is a very good CPU, but the 8400 beats it soundly and they are in the same price range. The H370 boards will be released next year and will be the perfect time for an 8400. There will probably be a Ryzen refresh next year too. So in short, next year may be a very good year to get a new CPU.