i5 and i7 are prefixes for Intel's processors, and they've been attached to many processors in the last few years. The Core processor series has i3s, i5s and i7s, which generally increase in performance in that order. None is "newer" than any of the others.
LED's nice, and it'll certainly increase your battery life.
That laptop won't get you any gaming, that's for sure. You'll need a discrete graphics card if you want to play modern games. That Toshiba uses the processor's little graphics module, which is pretty awful. Keep looking.