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I have been reviewing the charts. And it seems like benchmark wise, an upgrade from my GTX 260 starts at the 560 in the 500 series cards. But only just barely.
The 560 is about as low as you can go on the Nvidia side if you are looking for a gaming card, yes, but it would be a significant step up from the GTX 260. It's close to 30% better than a GTX 460 at 1080p, so considerably better than a GTX 260 (on the order of 60%).
How is the 560 around 30% better than a 460 (1GB I assume) when its very similar apart from clock speed which is 20% faster? Or maybe you are thinking of the Ti version? But I do agree that a 560 is the about minimum I would recommend for a good gaming card. Maybe a little lower for people with sub 1920x1080 and no intent of upgrading soon or that play less (visually) demanding games.