Each to their own. I use tube amps and 0.5 mm picks. :p

I fully expect that you will outgrow your first gear, so don't go crazy on it until you have enough experience to be able to decide for yourself what suits you best. Much as I love my vintage tube amps, I will readily admit that they are much too loud for home use.

My only reservation about the Line 6 (any multi-effects rig actually) is that you can get distracted by messing around with all those damn buttons. Learn to play [u]the guitar[/u], then add some different flavours with the effects.

There is so much to learn about the subtleties of touch and pick attack that are so important to really getting your sound out of the guitar.

The SA160 is a good axe to grow into. For now, all you really need is something that allows you to hear what you're playing. Enjoy the adventure! :)