Yeah that looks fine, 8 G of ram is more than enough.
The reason a CPU downgrade was suggested is because the 4690k is the best chip for gaming for the price. Buying that I7 is not worth the money in terms of a performance gain over the 4690k
If anything, buy the 4690k, 8g ram and a better video card with the money saved. Like a r9 390 or a GTX 970
Cheers.