Hmm starting to gather a lot of good info from you guys. Please don't consider my $400 limit for the GPU as my budget, there isn't really a budget. If it's time to upgrade it all, then so be it, and please make suggestions on that. But at the same time, if a good GPU with the current system will be 'good enough' for BF3 and the like, then I'll just do the GPU. I will be gaming on the 22" monitor at 1680x1050 and have never cared about AA or AF, so I would imagine my demands would be a bit less than the benchmark posted.
As to the 'overkill', as far as I'm concerned, there's no such thing. 6 months from now (12 months at the latest), everything out right now, will be outdated to some degree. Everything will have to be updated eventually, and when the time comes, whatever was 'overkill' will then be appropriate. That's how I look at it anyway. Everyone thought the quad-core was 'overkill' when it first came out, everyone said just buy dual-core. Now most games need a quad-core (or at least are greatly benefited by a quad-core).