Re: The SM58...
Agreed that the mic and speakers are often the weakest link, with the 2nd weakest link being the operator of those items. With an SM58, you're dealing with a known pretty good constant. Those inexperienced will have people around them that know how to make the SM58 work. They know to turn this knob and that knob to a certain position to get the acceptable sound they want, not knowing why they turned those knobs. Now, throw in a different mic that they aren't used to, and they have to actually learn how to set the audio by ear. The better mic in an inexperienced users hands can end up sounding worse.
I consider the SM58 a starting point 'reference' mic. It's ROCK solid durable, which alone is a great feature. Not many other mics can match it in durability. When you find a replacement for your particular situation that works better, you can easily sell a used SM58 for darned near what you paid for it, so the investment isn't lost. Other mics don't enjoy the same resale value, in my experience.
As far as vocal mics, I love the sound of an AKG C535. Great mic, but definitely not something I'd recommend for someone just starting their search.