I would think the Core i3 will work way better and faster than the Amd E350, but the processor alone will cost you $120. All the reviews of the AMD E350 I have seen say that it will not play Netflix (which uses Silverlight). Is Netflix worth $80 to you?
If you are just interested in media playback, you could go with Pentium or Celeron in the LGA1155 socket at a lower cost. You should still be able to play Netflix at a price point much closer to the AMD E350.
I use an E350 in my HTPC. It can't play HD Netflix because Silverlight doesn't properly support hardware acceleration. 'Regular' Netflix plays just fine as well as YouTube, Hulu and properly encoded 1080p content.
That said, I agree... go with either a low power Intel (i3, pentium, or celeron) or go for an AMD Trinity. If you find yourself needing to do software decoding of a video file, you'll be glad you have the CPU muscle to do it.