As you are alluding to right there, Intel has one of the most confusing scheme for model numbers. I've just learned to go straight to Intel's web site to look at the model details and not ask

There's also little differences here and there like what kind of virtualization support you get, and if the CPU supports AES-NI (hardware accelerated encryption).
I couldn't find benchmarks for what kind of difference the cache makes for a mobile Sandy Bridge, but with other CPUs (the older Phenom X4 vs Athlon X4), cache made some differences in gaming. If you are comparing a dual core i5 and i7 however, I'm willing to assume the performance difference will come from the higher clock speeds rather than the cache, since 3MB is plenty for a dual core in most loads.