Photos with shallow depth of field are not achieved with wide aperture alone. It is a combination of aperture, distance to subject, and focal length. A background that is far away helps as well. With that in mind, it's more difficult to get background blur with the kit lens, but not impossible. The other side of the coin is that it is much easier to get background blur with the 35mm lens, but also much easier to miss your focus point because the range of acceptable focus can be razor thin.
IMO it's better to get the kit and add a fast prime; there will be plenty of situations where a wider or longer focal length is desirable/necessary.
For those of you with an entry level Nikon DSLR, and a budget to match, I'm just wondering what your thoughts are regarding this ubiquitous Nikon package below.

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