Lets get something clear here. The reason gaming performance is being compared between the 1700 and 7700K, is only because they fall into the same price range TODAY. But people have to forget how cpus were priced up until now. Everything changed this week, but your thought processes have not and neither have intel prices.
The true competitor for the 7700K, its not any of AMD's 8 Core parts, the same way its neither of Intel 8 core parts. The only thing pitting these two cpus together in gaming, is the insane price of the 1700 - a part made for the same workloads/market as the 6800/6900. The price is so insane, we misjudge this fact.
The analog cpu from AMD to fight the 7700K in gaming will not be a 330$ cpu, nor an 8 core cpu. Expect highly, highly clocked 4 core parts at about 200~250$. Compare games with these, not with the 3ghz 1700 Vs 4.2ghz 7700K