Great points in here.

I'm willing to bet that most famous professional guitarists started off with less than snobby equipment.

When it comes to things like a Squier starter pack, they are actually pretty decent and down the road people can eith upgrade the electronics to make it "better" (warning: relative term) or they can upgrade at that point.

Nobody is going to mistake a starter amp for anything top flight, but it churns out sound and has a headphone jack. That is all they are expected to do.

I see starter packs being resold that have extremely little use that can be had for $100-$125 for the entire kit.

As long as the neck is straight and the tuning machines keep it tuned for an hour or more at a time, they are a bargain.