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Go 7th gen for the better quicksync. I would say something like an i5-7500, they're cheap and should be about 40% faster.
TDP really doesn't mean much for power usage, both the i3-6100 and i5-7500 should idle at about the same power.
The i5-7500 is only £30 so almost 1/3 of the price of the 7700 which is great. Would 4 threads be enough for my application? Also what stat/website do you use to look at idle power?
Where are you finding an i5-7500 for £30? Last I checked they were more like £80.
I'm using eBay and honestly can see quite a few listings at that price (2nd hand ofc)
Prices must have gone down since I last checked then, might consider an I5-7500 myself now, thanks!