So i have 2 decisions, i can choose an 8320 with a Kraken x31 or another cheap water cooling solution or i can go for an i5-4690k but on stock. I will be doing mostly gaming, with light video rendering and photoshop. I also love to play DayZ/ArmA 3 along with League of Legends(Potatoes can run League so i'm not worried about that) and Next Gen games such as Far Cry 4, Assassin's Creed Unity(I'm so sorry), and Shadow of Mordor.
EDIT:Forgot to include i will be doing GTX 970 in SLI
If you're going for two 970s, i5 without a doubt. Its not very difficult to install a cooler later anyway.
Get a 4690K. Photoshop, as well as all the games you listed, favor stronger single core performance over multithreaded performance.
Run the stock cooler for a while or grab a Hyper 212 Evo. It is cheap and should allow you to even do some mild overclocking. If you wanna get a better cooler grab a Noctua. The NH-U15S and 14S both perform about as well as a 240MM AIO (Corsair H100) but are about $30-$40 cheaper. Quieter too.
I wouldn't say that willynilly. When it comes to games the i5's per core performance has the advantage, but 8350 does better at rendering or encoding over the i5.
http://www.youtube.com/watch?v=iehrXA3n39c