Before the ASUS GPU Tweak tool was available, 7850's could not overclock past 1050MHz (CCC & BIOS limits), but 7870's were allowed to go up to 1300 (if the GPU's could reach it). Now the 7850's can go just as high as the 7870's, meaning the 7870's no longer overclock better. The only performance difference between the cards is that the 7850 has 20% fewer shaders.
Like with the 6850 vs 6870 and 7950 vs 7970, shader counts alone do not majorly affect performance. Clock speeds, ROP's, Memory bandwisth etc mean that a few missing shaders make little real difference.
Many reviewa show a 7850 overclocked to 1050MHz equalling a stock 7870 @ 1000MHz. That mean clock for clock a 7870 is only very slightly faster.
Stock speeds
Stock 7870 = 1000/4800
Stock 7850 = 860/4800
difference = ~20%
before GPU Tweak allowed unlocking average overclocks
OC 7870 = ~1250/5600
OC 7850 = ~1050/5600
difference = ~25%
with GPU Tweak unlocked overclocks
OC 7870 = ~1250/5600
OC 7850 = ~1250/5600
difference = 6-8%
It is not that 7870 no longer overclocks better, it is more that 7850 now overclock just as well. The 7870 is not worth 40% more money for just 6-8% performance.