I assume you're referring to this kit, for $200? :
It depends on whether you have more money, or more time. The kit itself is fine. IMHO you don't necessarily need a cooler for a hot liquor tank (if you have two kettles with spigots, you can use one of them for sparging), but depending on your setup, it might be useful to have it.
I've made 4 of my own mash tuns (which easily double as hot liquor tanks). The process is much easier now that I know what I need, but the first time I probably made three trips to the hardware store.
10 gallon coolers are about $45-$50, and I found that with all the parts, the cheapest I could get a spigot and strainer were about $20 at the hardware store. So, $130-$150 for 2 mash tuns.
If you're more interested in brewing than making brewing equipment, or just don't have the time, the starter kit is probably the easier way to go.