You can repair the screw-hole by dipping the pointy end of a flat toothpick in wood glue and sticking it in the hole. Push it against one side of the hole and hold it there. When the glue is dry, snap off the toothpick flush with the guitar body. Now re-install the strap-button.
And while you're deciding what kind of strap-lock system you want to use, you can poor-boy it by using the plastic tab from a loaf of bread. Just snap it onto the strap button after you put the strap on. Not real convenient, but it's dirt cheap.
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