The original Nehalem was bang for my € at least. my core i7-920 processor still lasts, and is not reaching it's limits yet, even though it's at the stock speed of 2.67 GHz. Although I don't encode, so I probably don't count, do I? I only game CPU intensive games (EU4+PCSX2 simultaneously for example) and it does that perfectly.
The update adds background music player Oo, for some games that's a necessesity in the long run (I'm not talking about Eternal sonata, here, it's going more in the direction of Disgaea)