First of all it's wrong, it depends a lot on the game an both scale pretty decent recently.

The 770 beats a 7970 GHz and is hands down the best card for SLI right now. If you compare the price of a 770 and a 7870 GHz then we also have to compare a 7970 GHz and a 7870 GHz. Guess what, the 7870 GHz is cheaper. Now if we compare the 7870 with a 7750 we'll see that the 7750 is cheaper. Does that mean the 7750 is the best card? No, it's the cheapest with the least performance.

Last but not least: an i7 is indeed unnecessary, but OP doesn't even want to stream. And i doubt that b4nny is streaming at "like 1k fps".

It's more about the GPU. The GTX 770 generates 200-250W heat under load, the 4670K won't go over 130W when overclocked (<90W on stock clock).

1) I want a good intel processor like an i7.
i7 is just branding, doesn't say a lot about the CPU itself.
For gaming a i5-4670K is fine and 100$ cheaper. You'll get the same fps (+-1%) as with a i7-4770K.

2) 8gb ddr3 ram should be plenty.
Yes.

3) My current hdd is crap I don't even think it's 7200rpm. I would like one around 500gb minimum that is fast. 10k rpm if it's worth it? I never come close to filling 500gb.
A SSD and a 7200rpm HDD should be fine. 10k isn't that much of a difference but much more expensive. 120 GB SSD for OS and maybe a few games would have long load times (or games that you want to start within seconds) and a 1 TB HDD for everything else.

4) Definitely want to go for a top of the line NVidia gpu.
Top of the line = Titan ~1000$, GTX 780 ~700$
I can see neither the budget nor the need for that.
A GTX 770 or a Radeon 7970 GHz is more likely to suit your needs.
Nvidia or AMD doesn't matter, it's all about performance but i'd give that one to the 770 anyway.

5) I'd like a mobo that can support SLI if I ever decide to go that route.
That can be arranged.

6) One MAJOR problem i'm encountering is heat coming from my PC. My room is always hot.
So a good case and cooling system is a must but I must admit i'm clueless as to how or what.
Cooling doesn't make the heat disappear, it just moves the heat from CPU/GPU into your room. If your room is that small and hot then it's going to stay that way or even get worse.

7) Items I can re-use: 650w PSU, CD/DVDR. If you think the PSU contributes to my tower giving off so much heat I can change it as well. Or if I need more than 700w for a powerful system.

I'd buy both new so you can sell or keep using your old pc. A new PSU can't hurt and the CD/DVD writer won't break the budget.

Two suggestions, both need a bit of tweaking, case, colorscheme and other stuff can be changed.
Overclocking: http://pcpartpicker.com/p/1hebH
No OC: http://pcpartpicker.com/p/1hefx

It's not a problem, just play them all.
Playing mixes is even easier that way, so why not?

FYI the time between two updates is 0.015152 seconds, there's no interpolation done when only one packet is within the interp time.

cl_interp 0 + cl_interp_ratio 0 -> interp 0 ms
cl_interp 0 + cl_interp_ratio > 0 -> interp > 0 ms

If you don't want to buy 16GB RAM now just use one 8GB stick and upgrade later. The difference between single and dual channel is unnoticable in games.

Hyperthreading doesn't magically make cores faster. For games it doesn't do anything at all. Go for a 4670K, if you suddenly need Hyperthreading you can still buy a 5770K or whatever it'll be called, intel won't change the socket for the next generation (broadwell).
If you want a technical explanation why it is that way just asked but be warned, it is going to be very long and complicated.

Some random benchmarks i found and as you can see there is pretty much no difference between Hyperthreading and no HT.
http://www.vortez.net/articles_pages/intel_haswell_core_i5_4670k_core_i7_4770k_review,13.html
https://teksyndicate.com/videos/amd-fx-8350-vs-intel-3570k-vs-3770k-vs-3820-gaming-and-xsplit-streaming-benchmarks

Without at least 2 GPUs you won't ever get bottlenecked by the 4670K anyway.

tl;dr
Hyperthreading won't do anything in games, go for a 4670K.

You might want to check with mat_dxlevel in console while on a server if something overwrites your launch options or if it's really on dx9.

You probably set your directx to 8.1 for highframes.
Put -dxlevel 95 in the launch options, launch TF2, close it after the main menu appeared and remove -dxlevel 95 from the launch options.
Be wary of the worse performance in dx9.

Just crouchjump through every door until this gets fixed.

micro ATX is a weird choice for such a powerful build.
With an i7-4770K this looks like an editing build but then there's no HDD and only 8GB RAM.

Answering these two questions would help a lot:
What are you going to use it for?
Why micro ATX?

1. I think we're just talking cross purpose now.
It might give you better performance when your performance is not optimal, but for optimal performance they should be the same.

2. 128kbits isn't an issue for most connections plus it's not being used most of the time, so it won't hurt you although 60k would probably be better.

3. I messed up that sentence.
Updates are sorted by server time, not client time.
Unless your fps are capped at 66 and were perfectly in sync with the updates the updates will be used in the NEXT frame that is being calculated anyway.
network jitter > frame calculation time seems really high.

4. I meant that just cl_interp would've been easier and shorter.

1. There is still no reason to set them to different values by default. Why would you use a config by default that is optimized for servers that get throttled by their bandwidth (especially in comp)?

2. It's not like it's bad setting it to more than 60k so what is your problem with that?

3. Network jitter really shouldn't be that high on a good connection.
You use cl_interp_ratio 1 in your own settings. You even use a lower value at one point

// Harshest timing oriented interp settings -- uncomment only the one appropriate for you
//alias net_harsh "cl_interp 0.0152; cl_interp_ratio 1" // for updaterate 66

0.0152 where it should be 0.0152152

4. Most of your config is identical with chris' settings, the rest are just weird interp settings. You use both cl_interp_ratio and cl_interp which is unecessary and most of the time both counteract each other because you set them to different values.
See valve dev wiki

There is no vertical fov correction?

1. Enlighten me, why should you set cl_cmdrate and cl_updaterate to different values?
2. I am #6. 128000 or 100000 it doesn't make a difference.
3. Network jitter is usually not a sign of a good connection.
4. To me quoting after your own post seems really funny.

1. The defaults are horrible. 66 for both. 40 if you can't get enough fps But less than 60 fps aren't good anyway.
2. Why not? 128kbits is not much. I'm not sure if it's the max though. Most servers restrict it to 100000 anyway.
3. This is a good setting for a good connection, don't know what's so funny
4. dat quote lol