I managed to get this new for less than it is priced here. £78 from eBay. For me, it is all that I need for a long while. I use it for general computing and occasional gaming. You can pair up a motherboard and RAM very cheaply for this processor now.
My graphics card is a 1GB MSI Geforce GTX 460 and my system build came to a smidge over £400. I am yet to find a game I play that the system struggles with. Assassin's Creed 2 runs at around 50fps.
All in all I would say this is very good for the cost. Newer i5 equivalents probably require greater investment in terms of RAM and motherboard but may yield more performance. If you choose a processor in this realm, I would advise an SSD as a primary drive to really help your system. I find I am slightly bottlenecked in terms of data recovery.
-Fast and powerful
-Cheap to couple with components
-More efficient processors coming onto the market