Yes, you can always pay more for something more fancy.
But I don't think that you can beat the $500 Dell on performance/price.
I disagree. First, it's not a $500 computer after the necessary modifications. Second, here's what pcpartpicker gave with similar values with not even the cheapest alternatives. As you can see, the price would be about the same but with plenty of alternatives to choose from.
PCPartPicker part list:
http://pcpartpicker.com/p/PqwcFTPrice breakdown by merchant:
http://pcpartpicker.com/p/PqwcFT/by_merchant/CPU: Intel Core i5-4460 3.2GHz Quad-Core Processor ($179.98 @ OutletPC)
Motherboard: Gigabyte GA-B85M-DS3H Micro ATX LGA1150 Motherboard ($50.98 @ Newegg)
Memory: G.Skill AEGIS 8GB (2 x 4GB) DDR3-1333 Memory ($65.99 @ Newegg)
Storage: Western Digital Caviar Blue 500GB 3.5" 7200RPM Internal Hard Drive ($49.24 @ OutletPC)
Video Card: EVGA GeForce GTX 750 Ti 2GB Superclocked Video Card ($119.99 @ NCIX US)
Case: Thermaltake VL80001W2Z ATX Mid Tower Case ($24.99 @ Micro Center)
Power Supply: SeaSonic 620W 80+ Bronze Certified Fully-Modular ATX Power Supply ($54.99 @ Amazon)
Optical Drive: LG GH24NSC0B DVD/CD Writer ($15.00 @ Newegg)
Operating System: Microsoft Windows 8.1 - 64-bit (OEM) (64-bit) ($89.98 @ OutletPC)
Keyboard: Rosewill RK-101 Wired Standard Keyboard ($6.99 @ Amazon)
Mouse: Gear Head MP1600RU Wired Optical Mouse ($4.19 @ Mwave)
Total: $662.32Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2015-01-13 05:51 EST-0500