First Build - When is it more than I need?

Hey yall! First time PC builder here. I’ve always loved the idea of building my own PC but lacked more than basic knowledge. I’m moving close to my friend, whose obsession is gaming and building rigs (he’s built several and built my brother 1). I’ve put parts together, and he’s pushing for a 5080 and possibly a Ryzen 7 9800X3D. I have a 1080 P monitor that at some point I will upgrade, but I don’t have money for that too. It also pushes my budget way too far (2000 isn’t an option).

Would I notice a difference if I went down to a 5070 and the Ryzen 5 7600X? I would also be upgrading from a 3060 laptop GPU or playing on my tv with an Xbox series S.