My theory is; buy as much guitar/amp as your burget can afford. This comes with a large number of caveats too.

To wolf's point, if the starter pack plays nicely and that's what your budget can afford too, nothing wrong with that at all. This does go back to what I was saying; as much as you can afford. If you have $200 to spend, get out there and do your best to maximize the quality in that $200. However, if you have a budget of $500, don't just look at starters but expand the horizon to fit in the best gear in that budget.

The ykey is to be sure that you have instruments that you enjoy playing.

Also, I'm not always sure that having a collection of budget gear (unless you're Jack White) is very useful. I remember an interview with some famous person who was talking clothes, but it applies here; 'I'd rather have one really nice suit than have 10 suits that aren't that nice. It's not how many you have but how well they work for you irrespective of the price.

The last few instruments I've purchased (a bass, mandolin and resonator guitar) were not super high-end purchases. Though I feel fortunate that I can buy gear I would have freaked about when I was a kid, it doesn't mean I should. I wanted a bass to play bass parts on stuff (duh....) so I went about looking for a good workman-like bass that felt good. I ended up with an Ibanez bass (SR400?) that was on sale and saved $100 or so (I think it goes now of $400 to $450). I use it a lot and it is a grwat playing, relaible instument. The mandolin? Never played it but wanted to start so I spent $200 on an Ibanez (too)...and for the record, a mandolin is strung low to high: G - D - A - E. So if ya can think chords upside down, you can play mandolin right away....Last was the resonator. I wrestled with this. I really wanted a National Steel but just couldn't quite make the move for something I was just stepping in to. So, I split the different and got a Gretch and spent a few hundred on that.

Thing is; know your needs. I have really good playing instruments that suit what I need them for. I could actually afford more but did not need more. Not yet, any way. And that is the point of it all being, get what you need to do what what you want.

Snobbery is kinda useless. It getting the instrument and great that gives you what you need. What it says on the headstock is meaningless.