Should I use an older-gen CPU with a motherboard I have, or buy new?

[131as22]

I have an Asus Rampage II motherboard that I had leftover from a CG5290. I plan on giving it to a friend, who I am building a pure-gaming PC with a $700 budget (for the PC alone).

Motherboard: http://www.esaitech.com/asus-61-mib852-01-essentio-rampage-ii-cg5290-socket-1366-desktop-motherboard.html?pk_campaign=ga-pla&gclid=CjwKEAiAgranBRDitfSQk_P7vnMSJAAhx5G5_HNrwi4DSy8nbGYJgx5rrIgN5ctJxHkef48texbJWxoCaYfw_wcB

My question is, should I keep the Rampage II motherboard, which uses the 1366 socket, and buy a used i7 960 3.2ghz or a Xeon 5660, or would I get better performance buying current gen stuff?

I would be spending $100 total for a mobo+cpu, versus buying a $100 mobo+$150 cpu. I could spend the $150 on a better GPU, which is better for a gaming rig, right?

Here's the current parts list I have in mind:
http://pcpartpicker.com/p/M4ZxCJ

 

[eatmypie]

Sometimes on CL you can find some really amazing deals or even on ebay for the 960 cpu's. As long as you spend some money on a good cooler you can overclock it if any bottlenecks pop up. Unless your friend plans on going crazy with the video card a 960 cpu won't even bottleneck the 970.

 

[ThanatosFX]

Yes spending more on a GPU is always gamers priority, that motherboard is totally fine.

 

[131as22]

I won't be doing any overclocking, but I do plan on getting a GTX970 or a R9 290x. Hopefully they will fit into the case I chose.

Thanks for the answers!