The camera records already in h264 but it's a relatively constant and high bitrate format, something like 16-24 mbps.
Dave's problem is slow upload speed, he has to optimize his videos to retain as much quality in a reasonable amount of disk space. The camera format (and camera videos in general) are not optimized for that, no matter the scene complexity the camera will use the same disk space, they have a hardware encoder inside that balance battery consumption with encoding complexity and encoding time.
Dave imports these video into the editor, makes some cuts and stuff on the videos, saves into h264 with some big file - high quality setting (hence no actual real processing work, no big cpu usage by the editor), and then the video goes to handbrake which encodes with specific settings that shrink the video file size while retaining as much quality (constant quality factor, each frame has same quality, size varying depending on complexity)
Anyway... I was the one pushing for AMD as a good solution for the money, but I'm perfectly fine with Dave's choise for the 3770k.
Hardware wise, the only thing I don't like about that configuration is the power supply.. i personally don't trust Thermaltake like I said, and I'd recommend paying a bit more for a psu with Japanese capacitors and more modern OEM design/architecture. I would go for a psu that has a Delta or Seasonic OEM design inside, but you'd have to search for reviews for each psu and determine that, which takes time.
But in the end, that Litepower will be OK, the system won't even use half of the maximum power it's rated for, it will be OK.