Is this what you're considering upgrading to? If you're getting a really good price on everything, this is pretty good. I have the same CPU (7700k is an "old" CPU), a Z270X-Ultra Gaming,16GB DDR4, and a 1080 Ti. It has no problem running games at high detail on an ultra-wide screen (2560 x 1080), and it's adequate to run an Oculus Quest 2 either by turning down graphics quality, or turning it up and relying on Oculus' Asynchronous TimeWarp (ATW) that alternates refreshing the screens, and uses other "trickery" to look like the refresh rate is higher (generates some artifacts).
Because I use VR, I'll probably upgrade to a newer i7, or an i9, and at least a 3060 Ti (maybe 3070 Ti) or whatever's available around the same price range, and new motherboard with NVME slots for SSD drives. However, the current system is "adequate" for my use--but the upgrade would make things easier to attain higher refresh rates in VR.
I'd recommend getting an SSD, at least 500GB, or 1TB (getting reasonable), for the gaming titles you use the most. With Windows 10, you can use LZX compression to reduce a lot of AC's content (KN5 and DDS files) to a third of their size. They read faster off the SSD, and with a fast CPU, they un-compress and load quickly. Content Manager has this compression feature in it's Tools section, or you can use CompactGUI.