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£150 is indeed more of a sting for something that as you say many won't need / notice.
In Euros it's only adding 4% (to the 16GB / 1TB configuration) though and I'd say that's rather negligible, plus I'm sure getting that upgrade will help with resale value so should be a smart idea down the line.
Back to the original question though -
are there any downsides in choosing i7 over i5 I'm not aware of?
Yep. That’s how sales works. Oh, I’m already spend x fuckloads of money, so a bit more doesn’t hurt. In £'s the i5 to i7 move is 150 more, adding about 10% to the total cost. That’s a legit saving, on something that many won’t notice for most office/web use.