Studio Setup 2 adds some basic MIDI capability to your home recording studio setup.
This setup keeps the condenser microphone in the mix, but now it's for vocals only.
It also includes direct boxes for both an electric guitar and synthesizer (which can also be used as a MIDI controller).
Finally it shows how to studio monitors can be exchanged for the headphones shown in the 1st setup to fulfill your monitoring needs.
Assuming that you supply your own computer to use as the power behind your digital audio workstation and your own electric axe, this setup can be built even under a tightly constrained budget.
You would be able to record guitar, vocals, and introduce MIDI capability to your songs.
Along with a softsynth you could use this MIDI controller to add countless numbers of sounds to your recordings, or record the onboard sounds of the synth or digital keyboard itself.
The added pieces do jump the cable count up from what you saw in studio setup 1, but this is a very complete setup that will keep you busy and sounding great for a long, long time.