Coming from another computer enthusiast, who also has a I7 920 (D0 Stepping) @ 4 Ghz, i call BS on this.
For one, the 5870 was not nearly twice the cost of the 5850. It was at most 100$ more, likely closer to 75$. And yes, there was about a 10% performance lead. We're talking 300$ vs 350, or 350 vrs 400$ here..
Also, yes you can use bios updates and overclock a 5850 to stock 5870 performance or higher, however the 5870 can overclock that much further and maintain it's lead.
Your exagerating here, neither of those cards where "high end" either, the 5870 was, at one time the top "single gpu solution" but if we are talking strictly "high end" we must consider 5900, dual GPU solution, it's the only thing close to the previous mentioned 600 euro's, and it's almost twice as fast as a 5870.