engineer5261 :
Not possible, also if you decide to pick a fist gen i7 - be aware that your power draw will increase and your power supply may already be near the limit as it is with the optiplex builts, look into this if you decide on 1st gen i7. You will also not be able to change the power supply since it is a dell proprietary type.
First gen i7's chips can be up to 11 years old now. My second gen i7 died 2 months ago, I would question the remaining durability of these chips as they may be much closer to the end of their useful life.
1) Dell does NOT use a proprietary type. ONLY on the Percision lines where they different but really they were just server power supplies. otherwise they ALL use the standard 20/24 pin (Except since the 4th Gen CPU's. They have a new 8 pin PSU connector to the motherboard WHICH IS ADAPTERS FOR. the SFF comes with the normal TFX PSU which can be swapped out.
2) the 980 comes with a PSU powerful enough for the i7 870 since that IS an option for the optiplex 980.
3) Core i came out late 2009. if it was 11 years old it would have to be 2020. They JUST turned 7 years old and as i said a i7 870 is just as powerful as a i5 6500. They are limited to 1333 DDR3 vs the nice 2133-2400 DDR4 but honestly, even for gaming i don't think think you would see a HUGE difference. Even though it is SATA II Toss a SSD in it, 8-16GB of ram, i7 870 and it would still be a good machine.
I just had a OptiPlex 980, i7 870, 8GB DDR3 1333 and a SSD along with a OptiPlex 3040, i5 6500 8GB DDR3L 1600, SSD and honestly they were very close to the same speed after all the bench marks i threw at them (Minus gaming as I don't have a card good enough that would fit in the cases.