* Is there a better kit you recommend for a similar price or cheaper?
It is a bit much. Plenty of options depending on what you want.
For rotors, if you don't care about what they look like, Zimmerman blanks are the usual go to. It's about $200 for the pair, less than half of what those cost.
If you do care about them, looking cool (and trust me, nobody knows about that more than me) FCP does have the Zimmerman sport drilled rotors, which are about $340.
Or if you want the slotted look, I don't think there's anything wrong with those EBC rotors
For pads, the Red Stuff are pretty controversial pad. Some people swear they're great, some people swear their garbage. Some people think they used to be garbage, but change the formula and are now good. Personally, I think they're horribly overpriced. It's $230 for the full set, when you can get a good set of pads that work great for daily driving for less than a hundred bucks. I run PowerStop Z23 pads in everything. They're like $90 for a full set, stop fine, and have low dust and noise.
* Will I feel a big difference between the factory brakes and the above / recommended upgrade?
Probably not for daily driving, but I have a very numb butt dyno and don't feel the difference between most things. Any "improvement" you'll probably feel would be more attributed to having a fresh set of brakes, regardless of which ones they are.
* What tools will I need (and do you have a link to the tool for the rear brakes?)
Come on over. I have everything needed.
* Is there anything I'm missing / any tips and tricks you recommend?
You should consider it flushing the fluid as well, since it's probably never been done. Unless you track the car regularly, any Dot4 fluid should be fine. I like to use the Pentosin Super Dot4 because it has "super" in the name and the bottle looks cool.
As well, the caliper mounting bolts are technically one time use. I've never replaced them (I know many people don't), and didn't even know that for the longest time, but they are. If you're ordering from FCP, it isn't more than a couple of dollars to add them onto an order. So something to think about.