It sounds like he's already got a good set-up for a beginner. The Strat pack is ideal for a younger kid that wants to get into, or test the guitar waters. The guitar is designed for beginners and the amp is nothing over the top.... Since you're looking at around 200 dollars... unfortunately you can't do much more than what you've got... However, Squire does make a pretty nice deluxe strat for about 170. Since he has a decent setup for a beginner... I'll suggest something slightly different than what the others have... and something that you may not have thought much about...

How about getting him an effects processor... or some pedals... or maybe even a bunch of little things like an instruction video, picks, strap, strings, etc... etc.... There are endless ways that a guitar player can spend 200 dollars.... Here are some:

DigiTech makes a wide range of products from entry level to professional level... You can get a beginner model with an expression pedal as low as 50 dollars for the RP-80..... you can spend about a 100 dollars on an rp-200..... or you can get something that will really allow him to have some fun for anywhere from 150-200 in the GNX2 model.... Here is a link to an ebay auction for one that is used....
http://cgi.ebay.com/Digitech-GNX-2-Fully-working-order-Nice-and-clean_W0QQitemZ330060455259QQihZ014QQcategoryZ41419QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
I use to have that exact processor... it allows you to really play around with effects and such and it's great for beginners because it's not hard to operate.... I think he would enjoy that just as much as a new guitar... It will open up a lot more avenues for tones and effects than just a new guitar... When you're at a beginner stage it's important to look at the "bang for your buck" motto... and Digitech offers some of the best "bfyb" out there... bar-none. So I suggest checking those out! If you can get one used for a cheap amount then you can even spend some of the extra cash on some picks... and if you get him an effects processor... you'll need an extra cord! Overall i think it's the best option... but it's up to you!!!!