Yes, I agree. If you want to game at low to medium settings, go with Intel.
The above is a joke.
But to say what you said above to me is like saying, "If you game at real world settings than an i3 is competitive with an i7." Of course there are some games and situations where all the CPU power you can muster is a benefit in gaming, no doubt. But most games today are GPU limited at settings we actually use. In my experience games made by smaller developers that are CPU limited still fly on my FX even when using just a single core. With 4k becoming mainstream and 5k right around the corner, I'm still maintaining my point, that the CPU just isn't all that important above a certain threshold in real world situations. For benching, 120Hz, multiple higher end cards, a faster CPU will help you get the most out of your hardware. For the other 90% of us, a moderate CPU + strong GPU will be every bit as good as a $1000 CPU + strong GPU combo since the CPU is rarely the limiting factor in your frame rates.
*edit
Didn't see your addition before I posted.
Do you think if AMD fans went with Intel because they were unhappy with AMD's offerings and they lost more revenue they'd somehow put out better products than they have because 'their fans demanded' it? I demanded better music from Metallica since 1994 and stopped buying their albums, that didn't seem to help.
I understand what you're saying, but to me the reality is that my FX doesn't cause me to compromise at all when I game. I have games that my FX doesn't even make my 7970 hit 100% GPU use. Do I care when those games bottom out at 52FPS and spend an overwhelming majority of their time at above my monitor's capability to draw the image? No. I also expect most games to be graphically limited with the new consoles and 4k (and on the horizon 5k) monitors becoming more mainstream.