Intel Core i3 vs. Core i5 vs. Core i7: What do you get by spending more?

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TechSpot published Intel Core i3 vs. Core i5 vs. Core i7: What do you get by spending more?

A quote from the article:
Those building an Intel machine these days have loads of options, with desktop CPU prices ranging from as little as $60 to well over $600. The Core i3 is intended as an entry-level option, the Core i5 is geared for mainstream usage, and the mighty Core i7 is meant for high-end systems and enthusiasts.

Many will wonder which one is right for them. Do they need a Core i7 or will the Core i5 be just as fast for their needs? Should they spend less on a Core i3 and allocate the savings elsewhere, or is the Core i5 worth a premium?
 Intel Core i3 vs. Core i5 vs. Core i7: What do you get by spending more? @ Techspot