So after all I read, what you all suggest is for me to go with an I5-4690K and a Radeon 280x or 285 with a PSU of ~500 to 550W(more if I would opt to upgrade to dual card in the future)

That old story about AMD GPU works better with AMD CPU is bullshit?

Thats the same setup I am running now other then I have a 7970GHZ ( R9 280X ). I have no problems running newer games like Ryse Son Of Rome, Metro Redux and Shadow Of Mordor at high settings.

I would build this:

http://pcpartpicker.com/user/ofrm1/saved/7XWypg

You can replace the 290 with a gtx 970 and get a little more power, depending on the sales that are going on and the supply.

Unless you need a new PC right now.. I'd wait for the new GPU's to launch. The GTX 960 is expected to be revealed at CES (most likely launched soon after), and R9 390X out in early Q1.

There are no bonuses as of yet to having a AMD CPU coupled to a AMD GPU instead of an Intel CPU. That might happen one day, but it's not the case right now. Mantle API also works with an Intel CPU, only an AMD GPU is needed for this.

The only case where it is true is when it comes to integrated graphics in AMDs APUs, as they are generally more powerful, have better drivers and driver support and more standards supported than Intels iGP, although Intel is catching up lately.

If the i5 4690 and the Radeon 285 are within the limits of your budget, they are preferable to your previous setup, but the difference is not very big.

Yeah, that story is not true.

I would get the cheapest i5 (mine is i5-3330) I could find. The extra GHz doesn't have much effect on FPS to justify the price difference (at least here in my country). The savings could go to a better GPU or something else. Generally, in gaming, you can get any good CPU you know that won't bootleneck.

You can see how a i5-3470 performs almost the same of the pricier i7-3770k on a super demanding game like Crysis 3.

http://www.techspot.com/articles-info/642/bench/CPU_03.png

Yes on the i5. It is better for gaming hands-down than the ancient AM3-socket CPUs.

If possible I would look for a better GPU. They can be found used for pretty good deals if you keep an eye out, for example 780 3GB for $245 :

http://www.ebay.com/itm/ZOTAC-ZT-70201-10PGeForceGTX-780-3GB-384-Bit-GDDR5-NVIDIA-Express-3-0-Video-Card-/221634309185?pt=PCC_Video_TV_Cards&hash=item339a6f2c41

I have a 4790K and 980, and still wish I had more power.

Whoops! I was actually thinking of the 285. My mistake.

The i5 4690k is unlocked (means he can overclock in the future.) Even if he doesn't want to overclock now, it is great to have the option as he gets more into PC building and gaming. Especially since Haswell (rebooted) overclocks so well. Which brings me to my next point, it is better for him to get a Haswell architecture than an Ivy-Bridge. Especially when the price difference between the 4690k and the 3330 (or 3470) is about $25. Plus Haswell is LGA 1150 and Ivy-Bridge is LGA 1155, giving him more board options and upgradeability. 

http://www.newegg.com/Product/Product.aspx?Item=N82E16819115234 (3470)

http://www.newegg.com/Product/Product.aspx?Item=N82E16819116781 (3330)

http://www.newegg.com/Product/Product.aspx?Item=N82E16819117372 (4690k)

Yeah, I don't want him to buy Ivy (although Haswell is not any better than Ivy in gaming). There was a very good review showing it here, but it seems that the charts are lost now. =/

As I said (or I think I said), my point is valid only if you can grab a cheap i5. If the price is almost the same, there's no reason getting the 'worst' product.

What I wanted to state is that some people give too much credit for CPU. Taking WatchDogs as example, an i3 is just 6 FPS behind an i7.

* Sorry for my poor English. It's not my first language.