The i7 does excel at video editing/encoding. It's all about the Hyperthreading...
Video encoding tries to speed it up as far as i know, by having multiple threads, so the more threads you can process, the faster it'll go. There's also less use of L2/3 Cache for encoding, so it works really well. This works the opposite in gaming, as while there are still lots of threads, they're optimised by game software to be run in serial - as a single core cpu would, and each thread needs a lot of L2/L3 cache. The cpu tries to run all of them at the same time, which is far more cache required than any cpu currently out, so it clogs it up.
Get an i7 for encoding, and an i5 for gaming. If you do a bit of both, the i5 gets you more gaming performance, without losing too much on the encoding side.