I think what this thread fails to achieve is present a config thats tailored for specific needs, for e.g.
Websurfer, Casual Gamer, Gamer, Hard Core Gamer, VMWare, CPU Crunching etc.
What I mean by this is, someone who wants to run VMWare and has lots of CPU intensive apps does not need to spend 1.42 lakhs to get a Core i7 config, which in this case makes sense. For e.g. I can bet that for this user you can build a rig with Core i7 under 40k makes most sense but someone reading this thread would probably end up believing that Core i7 rig costs upward of 1.4 lakh. For e.g. my Core i7 config:
Config 1 Core i7 Casual Gamer/HTPC/VMWare PC:
Core i7 2600 - 13500
Asus P8H67 - 7200
RAM Corsai Vengenace 1600hz 2*4gb - 4600
PSU Corsair 420/CM Ext 600 watts - 3000
Cabinet any half way decent - 2500
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Total: 28500
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^^ This configuration is for someone who does not want to O.C. but needs VMware, HTPC, casual gaming etc. The P8H series offers oboard GPU but no OC abilities. Also Core i7 2600 has more Virtualization features (if running ESX) than i7 2600k.
For someone who wants better onboard graphics, you can go for Core i7 2600k with the above configuration. The 2600k has a better igp, please note above board wont allow you to OC.
If you require a slightly better configuration with ability to OC, I would suggest the following configuration:
Core i7 2600k - 15500
Asus P8P67 - 10800 (I had a requirement for this board @3 PCI/ u r free to choose different)
Graphic - ATI 5450* (Casual Gaming)<ATI 6570 < ATI 6850 - 2.2k/4k/8.8k
PSU - Corsair 500cx -3000
RAM Cors Ven 1600 2 *4gb - 4600
Case - * as per choice - 2500
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Total: 38600
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Coming to peripherals, there is no such thing as 1 size fits all. Some like music, some like wirelesss desktop, some like gaming mouse. Also investing in these items is more cost effective than investing in CPU/Mobo/RAM/Graphic as these items have longer longevity. I have the following in my various setups and prices are listed below. You can obviously go lower/higher depending on budget and need:
Keyboard/Mouse Wireless Combo- Logitech MK 710 - 4k IIRC
Speakers: Logitech Z623 - 7.5k
Logitech Z5500 - 14.5k
LCD 24 " - > 10k
So all in all a good Core i7 rig with half way decent graphic card can be built for less than 70k and is highly recommended for those running CPU intensive apps.