The real question is. What would you do with that $60 difference?
If it would go towards a better graphics card, then pick up the i5. If you have the money to fork over for the i7 at $229 and are going to pick up the same GPU regardless of which cpu then go with the i7 as it is beastlier. But, in gaming there is no difference between the two so keep that in mind. My 2 cents.
If you are gamer that does light computer oriented work, get the i5, no need to pay more for i7. If you game and do semi-professional/professional work on your pc, then get the i7. I7s provide more muscle for well threaded apps and productivity apps like some video and editing/transcoding software and 2d/3d design software. Be aware of 2 things:
1- Usually, productivity apps in your pc will take advantage of more RAM, too, so keep this in mind
2- That i7 is normally sold for over 300 bucks so you may not be able to get it for that price in the future, due to the fact that intel chips tend to hold their price point
Buy the i5-3570K and spend more money on getting 2133MHz, low-latency DDR3 memory (8GB; 2x4GB) rather than 1600MHz.
I own the i7-3770K.
There are VERY FEW applications that will actually run better on the 3770K vs the 3570K. Personally it's only HANDBRAKE (and not always depending on settings) and possibly Acronis True Image (though it look like only a 10% or so advantage).
My advice is take the difference and put it towards SOMETHING ELSE such as:
1. addon sound card
2. 2133MHz DDR3 (instead of 1600MHz)
3. BluRay Writer
4. Desktop Speakers
*On the other hand, in a very few games the i7-3770K can have a SMALL advantage over an i5-3570K, and the very real possibility also exists that future games such as ones using the UNREAL 4 engine will actually benefit from hyperthreading.
However, if you've drawn a budget in the sand then the $60 difference would still benefit elsewhere.