Excellent choice!!! I bought one very, very similar for my brother about 2 years back...You didn't get hosed at all, this is one of the better beginner-priced units I've seen. It'll play and sound fine, and she's probably years away from the humbucker vs. single coil issues. You probably got the Peavey Rage practice amp too?
Every time I go over to his place I tune it, and noodle away on it...I'd put it way ahead of the Squire strats which are really popular 1st guitars.

Incidentally, I used an old Squire Tele (with a few mods) in the last metal band I played in...got all kinds of cool looks and questions...nothing wrong with straying from the norm.

Guitar's are like speakers. If you think speaker buffs are anal, try posting on some guitar forums...yikes. One of my favorite guitars is an old $200 Vantage Avenger I bought about 12 years ago. Basically a Korean or Vietnam cheapo guitar, with some smoking humbuckers, nice finish, and simple design. I've got some Fender, Jackson, and Gibsons that I paid alot more for that haven't held up as well over time. I was too poor in junior high and high school to buy the fancy guitars the rich kids had so I've come to appreciate the value guitars.

You'll have no problem selling that Epiphone when she's ready for a Gibson next either...

You can find great deals on Digitech, DOD, and Ibanez effects pedals on ebay that she'd have tons of fun with...