As I recall, you OC that chip by raising the FSB.
Why not try it?
The cpu will shut down if it gets dangerously hot.
If your workload require many threads, a i7 will be good, even though the clock rate is less.
If you need more cpu for gaming, it is better to look towards higher individual core speeds. Few games are going to use more than two cores effectively.
I think watchdogs is largely single threaded.
If overclocking does not give you enough, it is time to consider a haswell upgrade.