Ok so I think I have come to a decision and conclusion.
I'm going to stick with what I have bought so the 7870k stays and I will buy some 2400Mhz ram to get the most out of it.
I figured that as this will be a living room HTPC/Steambox, there is no point going all out on the performance stakes, especially as I don't know how much it will get used. I have a main rig which is very powerful, Haswell i5 unlocked, 16gb ram, 6850, SSD, its 3 years old, but still feels super fast and runs most games no problem, I can upgrade the GFX card and have an upto date system, but all I play on it these days is CS:S, so it is severely under used. Plus I can get to use the ML05 itx case which will keep the footprint of this htpc small.
Worst comes to worst if this new 7870k based living room PC does get used a lot and a lot more gaming on it I can transfer the internals of my main rig, buy a new case to fit it all and then use that in the living room, then I can just use the 7870k machine as my room computer, as it will play CS:S or CS:GO without any issues, I can also reuse the 6850 in that to beef it up and buy a new better graphics card to go in the living room PC. Doing all that might mean I end up spending a bit more in the long run.
To sum for anyone else in the same boat, go for a 7870k build if you want a casual mini-ITX gaming PC to use as a 720p machine, don't expect any spectacular gaming expirience from it as its very compromised, the graphics capability sits between the R7 240 and 250. If you want to play 1080p with a great gaming experience and play latest AAA titles, then you have two options, if your on a budget go for separate CPU and GPU solution, the AMD CPU chips seem the best value for money on a budget, you get quad core processors, with Intel you get dual core, although both have advantages over each other. If you have more to spend then I would build around an i5 chip. Then of course buy a discreet graphics card, lots of choices out there for.
Thanks for all the help everyone.
