re: How Many Tools?

Nice Selection Ron

For the really basic starter kit.
Panel saw, 1/2 inch chisel, No 4 plane.
1980 or older plane - you'll need to refurb it and learn a fair bit in the process, but it will at least work after its been fettled, no guarantee of that on a cheap new plane).
You can make a surprisingly large amount of stuff with this, but it will take a fair bit of time to learn how to do it (I picked a no 4 instead of woodies because it is easier to learn how to use 1 plane as a scrub, fore, jointer, jack & smoother if it's a bailey type)

The mods I'd make to what you put for a first kit.

Sharpening - Can't help but notice you chickened out on this one, well, so am I :)
Anything, they all work.
Saying that - Nowadays I'd probably recommend cheap diamond stones -  I got a 400 and 1000 grit to see if they were any good a year or ago and use them pretty much for everything.
Oh, and a strop - It's a bit of leather, sometimes on a stick, make it.
Use a jig, or don't use a jig (I'd actually recommend a jig if you are just starting, took me a hell of a long time to get a consistent edge freehand)

Marking
Pencil :)
I'd drop the combi square for a try square - you need to spend a fair bit for a decent one and the bevel gauge can do 45 easy enough.
Straight edge is the first tool you make when you need it - use the ruler until then.
Winding sticks is the next tool to make - you can live without them easy enough, but it's 2 straight edges with optional colour, so a good skill build project.

Saws
Depends on the size of projects you are planning, if mostly smaller stuff I'd switch the cross cut panel for a cross cut backsaw.
And tenon over dovetail anyday - more versatile.

Planes
Drop the block plane - It's nice on occasion, but you can do without it, use the smoother.
I'd stick a rebate plane in instead though.
I'd like to add a plough as well, but I'd probably leave it out of the basic kit.

Chisels
Any one of 1/4, 1/2 inch or 3/4 (depending on what size of thing you are planning to build) - get the rest as you need them,  although a set is a good idea if you have the funds.
I use firmer chisels for pretty much everything but dovetails and really big mortices - but could get by with bevel for everything if I needed to.
Make the mallet - even if you need to use the chisels to make it (depends on the style you pick), you can use a bit of wood, or handy branch, for long enough to make it.

Boring
Same choice - I might go for a small 2 speed breast drill instead of the hand drill for a little more flexibility, depends on what is easy to get.