i7 versus xeon which one would be best for video editing and 3d animation?

Actually if you plan it for video editing or graphics work you should worry about the graphics card not the processor, as video/3d editing software will most likely use GPU all the time, even processor with at least 4cores@2.5Ghz is more than enough for 3d work. The most critical part is the Graphics Card, so get the best Graphics Card out there if you really want top graphics performance,,(also max out your ram capacity)

If you want to use your CPU for video editing and 3d animation than the intel core i7 is more than enough to get the job done. The intel xeon is a CPU made mostly for server so you don't have to worry about your i7 being outdated. By the way where your ram, graphics card and etc specs.

Sometime it depend on the brand try HP, Dell brand or Apple. The one you have is already good but not good enough what you hear is maybe only a sales talk. They are just the same but differ on technology and quality the one I mentioned is already tested.