This is often debated, but with personal preference Xeon for servers. i7s should stay with desktops.
Xeons are designed for servers.
i7s were designed for desktops not servers.
The market is becoming congested ever since Celerons and Pentium3s came into the market for dedicated servers.
You put something online to the public for people to use why not make it good, its like building your retail shop out of straws instead of bricks. That's my 2 cents!