This build will give you a little better bang for your buck. If you want to save even more money, you could eliminate the SSD (all they do is reduce load times,) or you could eliminate the hard drive, and use the one from your old computer. (after deleting everything on it)
The i5 3570k will perform slightly better in some games, but the 8350 is a much better value. If you buy the i5, you will be stuck with it when the next generation of intel CPUs come out. If you have an AMD CPU, you will be able to upgrade. At this point, few games take advantage of more than 2 cores, but due to the next generation of consoles having 8 core processors, we will probably see many games start to take full advantage of modern CPUs.