If you are new to playing guitar or just love playing acoustic, Fender offers this good deal. Normally, Fender sells cheap guitars under the Squire brand, but this is a Fender. For a Fender this certainly was a bargain, as you no doubt you've seen a lot of their other guitars and seen how expensive they are. This here is a diamond in the rock.
So why should you get this guitar? Acoustic guitars are great for their bright, unaltered sounds. While resonator guitars (sometimes called "Dobros") offer acoustic distortion (even with out any electric components) and electric and base guitars could send players down a rabbit hole of buying all sorts of accessories (pedals, amps, etc.), sometimes its just good to play something simple without any extras. Anyone who is committed to learning and playing guitar should own at least one acoustic. Let it be this guitar.
It should be noted that the body of this guitar is rather thick. Maybe it's because I'm more used to playing electric guitar. However, it is worth it considering Fender does offer a couple of modern features on this acoustic like a guitar tuner in the side of the body and a mic jack to plug the guitar into a PA system. I keep forgetting this is an acoustic-electric guitar namely because I've used it more of its acoustic features not its electric features.
Honestly, I like having an acoustic with a cut away, especially if you like to play "unplugged" and reach those higher frets. (Note: when we mean "higher", we mean "closer to the sound hole" because closer to the nut creates lower notes on each string.)
This kit comes with a lot of good things. Picks, a spare set of strings (note that these are Fender's 80/20 bronze light strings which have a 12 to 52 gauge; 80% copper, 20% zinc), a guitar strap (good news, there's a couple of buttons on the body where you can hook up the strap, but consider adding a set of Guitar Saver strap locks to preserve the strap's button holes from wear and tear), a DVD copy of Austin Bazaar's guitar essentials DVD, and a free trial to Fender Play.
But here's what does not come with the kit. It does not come with a capo (I would suggest the metal ones made by Shubb rather than the cheap clothespin looking things that Amazon has been hawking). It does not come with a guitar stand (which you should definitely get if you want to set it somewhere), and it doesn't come with a humidity pack (this guitar is made of spruce, if you have low humidity, there's a chance it could crack!), it doesn't come with cleaning supplies (even a microfiber cloth would do well to clean the strings), and the gig bag it comes with DOESN'T FIT.
The gig bag is too short for this guitar. (I guess that explains why this guitar is being sold so cheap.) But there are better gig bags than this one (Cahaya makes some good ones), and if you plan on long term storage, you should get a hard case.
The bottom line: I would definitely buy this guitar again. It's not perfect. Fender and Austin Bazaar (who is selling this package) both did a great job of putting together a decent starter kit. Both of these are some well recognized names in the musical instrument market. But that gig bag was awful. Fortunately, you can find a better gig bag or hard case at a decent price.