I also have both the K-5 and K-3 (and the K-3II, actually).
Regarding the K-3:
- AF performance is definitely better, especially under low tungsten lighting
- Placement of the AF button (for back-button focusing) is *much* better (at least, it is for me)
- Resolution is, of course, better - which I find most useful in terms of cropping range
- the lack of AA filter makes a noticeable, positive difference
- Dynamic range is, allegedly, slightly worse than the K-5 - but in normal shooting conditions, I haven't noticed any significant difference (YMMV)
- As for high ISO performance... I've heard several people say that the K-5 has a slight edge on noise. That may be, but it's because of in-camera RAW noise reduction kicking in sooner (this has been proven by one of our members some time ago). If you shoot RAW and process with Lightroom or similar with careful noise reduction, the difference in high ISO performance is frankly negligible in my experience, especially when the K-3's higher-resolution files are down-sampled to the same physical size as the K-5's
- More on high ISO - the K-3 is genuinely usable by another stop of ISO sensitivity, subject to careful noise reduction in post-processing (I base this primarily on accurate / acceptable colour reproduction)
- Focus peaking in LiveView can be useful with manual lenses (though I still prefer to magnify the view for ultra-precise focusing)
- Shake reduction is improved, though in practice I find both the K-3 and K-5 very good in this respect
Given typical used prices for a good, low-use K-3, I think it's a worthy upgrade if the factors above are important to you. That said... I still use my K-5 fairly often, and I remain delighted with the image quality. If, by some unfortunate turn of events, I found myself without my K-3 and K-3II, I'd have no qualms using the K-5 as my main body again. It's still a phenomenal camera.
Finally... The "K-3III" (for want of a better model name) is still some way off, and when it's released we can guess that it won't be cheap (given pricing of the KP). If you really feel you need to upgrade from your K-5, and if the K-3 specification has your requirements well-covered, I see no benefit in waiting almost a year for a new model... That's a lot of shooting time to lose out on