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My bedroom PC is rocking an E6600 at 3.2 GHz and my HTPC runs a Pentium dual core at 3.25 GHz. They're still quite capable, usually limited more by their GPUs than anything.
Yes, I still have an E8400. No need to upgrade.
Unless you want to play next gen games, then yeah, there's a need. If you're going to continue playing current games at low-medium settings, no, I guess not.
You may be surprised at what dual cores are still capable of these days. My E6600/650ti PC can play BioShock infinite at just shy of all ultra settings while staying consistently at or near 60 FPS... not bad for an "obsolete" CPU IMHO.