I've read the comparisons and seen the pros/cons and image quality difference. BUT from experience, can any of you answer the above question?
Well let's be honest this is a pretty subjective question but here's what I know...
I shot with a D7100. I recently (meaning a few months ago) upgraded my girlfriend to a D5300 so I do have experience shooting both and side by side. If by "better" you mean strictly from an image quality standpoint then I would have to say no; the D7100 is not "$350 better" than the D7100. The D7100 has more features overall than the D5330, but the D5300 brings some of it's own so I'll address this.
I'll go so far as to stick my neck out and say the internal focus motor of the D7100 probably accounts for, roughly, $125 of the price difference. If you can be happy using only those lenses that come equipped with their own focus motor, or if you're willing to use manual focusing of course, I think one of the biggest features of the D7100 is then nullified. I'll stick my neck out still further and say the weather sealing and magnesium-alloy body of the D7100 probably accounts for another $125 or so of the price difference. This is something else it's hard to put a personal value on but for me, the weather sealing is something of a consideration (I shoot near the ocean a lot as well as the desert, and both can be hard on cameras). The D7100 carries a lot convenience features though, that can not be ignored: more rapid access to settings, a lot more focus points and a better, brighter viewfinder. On the flip side, the D5300 has the articulating LCD, and the built-in GPS for geo-tagging (two features I'd kill to have on my D7100) as well as the built-in WiFi. So, all that being said, I think we've covered the majority of the price difference. My figures are guesstimates, I admit, but I'd wager I'm not *that* far off the mark.
So, as I see it, the question really becomes one about which feature set you want. If you have specific questions I'll do my best to answer them.
Edit: Having had some time to think about it, the pentaprism probably accounts for a fair amount of the price difference. The pentaprism is a five-sided precision ground lens and, as I think we all can appreciate, good glass (all that grinding!) costs money. I'd wager the prism used in the D7100, vs the "mirror box" use on the D5300 and similar cameras, accounts for as much of the price difference as either the focus motor or the magnesium-alloy body. Again, I'm guessing when I say but... That prism. I have a hard time believing it's not a wee bit costly to use.
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