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As I understand it, most disc copies of games today aren’t viable in the first place. Either all of the game data is not on the disc and some needs to be downloaded anyway, or the game copy on the disc is in such a shit state that you wouldn’t want to play that specific copy.
Discs don’t really protect us in the sense of ownership. It’s still reliant on the same backend to enable it in most practical senses.
Cities Skylines sees a fairly decent improvement going to the 3D cache chips from AMD (17% speedup here for the 5800x3D). Whats your ability to increase the budget to go for a 7800X3D look like? If this is a genre of game you like and you want to hold off as long as possible between upgrades, it might be worth springing the extra. The difference the 3D cache provides in some games is rather extraordinary. City builders, automation, and similar games tend to benefit the most. AAA games tend to benefit the least (some with effectively no gain).
A 7600X should be more than capable of handling the game though. So it’s not a question of need but if it’s worth it to you.
You do not want 4800 CL40 RAM though, that’s too slow. I’d strongly recommend going for 32GB of RAM as well; 16GB can be gobbled up quickly, especially if you want to use mods in Cities Skylines.
Going up even to DDR5-6000 is not much of a price increase. I’d suggest 6000 and something in the range of CL36-CL40. There’s a lot of 32GB kits in those specs in the ~$90 range. I would not build a gaming system today with 16GB of RAM.