The i7 has better single core performance, a better clock speed, and is more easily overclocked, and more cores. The much larger L2 and L3 cache on the i7 is also a big bump up from the i3.
If its a 2600K then its a no brainer to switch (Ks are unlocked) . You will get a gain in performance but if its worth $50 is ultimately up to you. Personal opinion, I'd swap CPUs with him, but make sure you have adequate cooling for the chip. I'm assuming you are keeping the same mobo/Ram/etc since both chips are LGA-1155s.