My upgrade is partly about performance, partly about the principle. I don't understand why Apple doesn't have a 3.2 or 3.3 GHz Mac Pro model available when the system, heat sinks, etc. can clearly handle it. Also, the cost is not a big issue. The Core i7 975 costs approx. $1,000 and I get back about $200 on the resale market for the homeless Nehalem chip. That's a net cost of $800 to go from 2.66 GHz to 3.3 GHz. If you look at the Apple Store, the upgrade cost to go from 2.66 to 2.93 is $500 retail ($450 if you're using edu pricing). Using those numbers, a net upgrade price of $800 to go from 2.66 to 3.33 seemed like a decent deal.
With few exceptions, the bulk of Mac software (and the ones I use most) cannot utilize 8 cores properly. Most of my work is done in Photoshop, Illustrator, InDesign, Word, Excel, Entourage, and Safari. Except for a few filters in Photoshop, none of those programs take advantage of 8 cores. Why pay for 4 extra cores when they will sit there idling most of the time? Looking at the costs for just the Mac and CPU upgrade (no RAM or anything else), my 3.33 GHz quad cost $3,100. The closest priced 8-core is a 2.26 GHz @ $2,999 with educational pricing. I would benefit much more from a 4-core @ 3.33 GHz than an 8-core @ 2.26 GHz. To go to an 8-core 2.66 would put me over $4,200 without any increase in performance.
With regards to "what if" the machine ever breaks down... perhaps I'm tempting fate here... I own two Power Books, two Mac Book Pros, have owned three Power Macs (one a liquid cooled G5 that is being replaced with the new Pro), a Mac Mini which I use as a phone server running Linux, and this new Mac Pro. I've NEVER had any problems with any of my Macs except for the G5 PowerMac which had a leak in the liquid cooling system, frying both CPUs. Apple paid for the repair even though the system was 2 years past the warranty period. I have had an overwhelmingly positive experience with Macs, and a very high reliability rate. I'm rolling the dice.
Are you.... running mission-critical apps that require the absolute fastest processor?
If not I can't see why you spent $1k on a CPU that's going to be only a little faster... especially since you're not even running eight cores. It's about a 20% improvement in speed, and one you'll hardly notice....