To be honest digital will be easier and cheaper. Sure you can get a K1000, but you will also have to get a light meter and have the continuing costs of film and processing. Sure you can buy cheap expired film, but if you want good shots, you should buy pro film or even meet at halfway with Reala or something, which will run you about $10.00 a roll.
I think you could learn alot with this camera, which would help you move up to a manual film camera, if you so choose. There are only two real issues I see with this camera a) maxs out at 8 sec. b) it is a fixed lens, which means you have to be careful.
Whoops! I just looked at the specifications again. The biggest issue is that it doesn't shoot raw. You would have to go the the fuji s9600 for raw, unless I am missing something.
In order to purchase a camera you can use all the time, ue or otherwise, it might be wise to consider a cheap dslr like the NIKON D40 DSLR W/ NIKON 18-55 II LENS for $469.99CAD at Henry's. If it is that much at Henry's I am certain you can get it cheaper elsewhere.
Edit: and don't forget the costs of a good scanner. I by no means trying to turn you off film. I love it, but it is a pricey and time consuming venture. I just spent the last hour scanning, spotting and resizing this picture...
This doesn't include the time waiting for the negatives to be processed and the fear that something will happen to your film before it is processed, etc. Not to mention that I am not done. I have to find some way to clean up her glasses.