Is this for gaming ?
You can switch for an i5-3570k, if it's mainly for gaming, there's no point in getting the i7 for that, both are quad cores, the ht of the i7 only helps on intensive apps like image/video editing apps.
With the money saved, get a 670 gtx, and a better psu don't get the cooler master psu, get a 550w-600w from brands like antec, xfx, corsair, seasonic, rosewill.
Also get a better mobo like an atx standard one from gigabyte.
If you are going to be doing video editiing + gaming.. I would suggest a SSD + a HDD for storage. and yes a 500W PSU isn't all that much. Iuno what he has against coolermaster though, I like mine it did though crap out on me once but that was after a month of using it which it was under warrenty and got a new one. Which has lasted me for over a year now which is nice.