The vanilla 7700 is more like the i5 competitor than the i7.
If someone wants a CPU with reasonable performance for gaming but wants to save some money there are quite a few options at the kind of resolution and settings people are likely to actually be gaming at:
But the 14700 offers meaningful benefits if you are doing something gaming adjacent such as recording/streaming with OBS, etc. while playing or a hardcore MMO/RPG players multi-boxing + stats/build tool + voice comms, or in some newer thread heavy games, etc. etc. something reviews don't tend to demonstrate.
When it comes to the kind of desktop tasks people are most likely to be considering something beyond a basic CPU the 7700 isn't even in the running:
The 2 most used video codecs for encoding video:
3D modelling type workloads:
File Compression:
Taken from
https://www.techpowerup.com/review/amd-ryzen-7-9800x3d/
And when you start using multitasking with several of these tasks ongoing the 12 extra e cores do provide significant benefits in keeping everything smooth.
If someone was seriously looking at the 14700 they are unlikely to be considering the trade off in performance for the money saving, conversely the 14700 does provide meaningfully close performance to the top end CPUs the saving in cost may be worth considering, albeit at this stage on an end of line platform.
For some reason the strengths of the 14700 have largely been overlooked in how meh the 14th gen overall has been and the noise around the degradation issues which at least so far have turned out to be overblown compared to the real impact.