I would say that so far that system looks good as well, however, as others have said, as far as upgradability, it isn't going to last long since that socket is going to die out. AM3 is going out soon as well, but that is to be expected for both sides since they have announced both Sandy Bridge and Bulldozer. I generally stick with AMD because it is the cheaper of the two but if you have an $1100 budget, that i5 system will work well.
As far as graphics go, I can also recommend the 6800 series. I own a Sapphire 6870 and have nothing but good things to say about it. However, you need a monitor that has a resolution that can make sure the graphics card will be using its full potential. A resolution of at least 1920x1080 is preferred, otherwise a 6870 is unnecessary.
For PSUs, I would recommend a nice Corsair unit. I would stay away from TX systems not because they aren't good units, but because of the large bundle of cables that never get used and just get in the way. I would go with an HX650 or HX750, which would allow for expanding to multiple graphics cards in the future. These units are also modular so you only use the cables that are required for your system while the rest can be put away in a box somewhere.
Also, if you do plan on overclocking, make sure you get a nice aftermarket cooler. The Megahalems are always good choices if you want to go air cooling. The Corsair H50/H70 all-in-one coolers are nice as well, but not as great as full on water-cooling loops. Basically something other than the stock cooler is preferred.
If you've got anymore questions feel free to ask!