I would keep the i5, that's more than enough for your usage. You should know though that 300W would be plenty of power without a GPU. I would however consider a cheap GPU such as the GT 520, HD 3000 is OK but it just can't compare to a graphics card. Even after adding that GPU, 430W would be more than enough.
Also if you can find it in the budget I would aim for a nicer case, that one is OK but I think you would appreciate something a bit nicer. The Coolermaster Silencio 550 perhaps.
Would you have suggestion for a board more in line with my needs? Right now at newegg its only 114 with rebate. That's the same as the Pro3 Gen3 and the Pro3 is only $15 less. USB 3.0 is important to me and I heard that the Pro3 has issues with most USB3 implementations because of its's controller chipset. Alot of people suggest moving up to the Exteme4 which has onboard USB3.0 and better LAN chipset- but that's $60 jump- not really worth it for me