Games will be more dependent on the graphics card unless you run lower resolution and quality settings. But yes it has more potential all around especially for more CPU-dependent apps.
I agree with Rattle about the vid card, in the $250-300 range the ATi offerings are better all around. Either an x1950xt 256MB or a used x1900xt 512MB. The advantage of the 7950GT over the x1950xt 256MB would be for games that *require* 512MB for high quality textures but this range of cards don't always provide playable speeds with all the options set high in the few such games anyway. xbitlabs.com has a recent review that shows this.. The advantage of the x19xx cards is better image quality options.