I would suggest that your LQS rep give you "hands-on" experience with the different setups before walking out of the door with the machine. The manual's instructions offers charts with the blade settings for the thickness of materials (fabric, paper, etc.) but it is measured in mm. On my first attempt I cut my mat so I purchased a scale (P/N W80527) by Performance Tool to assist me in determining what the thickness of the different materials are in order to select the correct blade setting. As with all machines, there is a definite learning curve. I personally think once you master the settings, you will not be disappointed with the machine and the endless possibilities it offers in crafting.
The mats do get etched/cut if the blade setting is too deep, however, the mats can continue to be used unless they no longer can be fed into the machine or lose their tackiness. The replacement mats are not expensive.
FYI - I hate cutting out applique pieces so I primarily purchased my unit for that purpose (both wool and quilt quality cotton fabrics for hand-stitched projects, quilts, and in-the-hoop machine embroidery) but discovered I enjoy cutting paper crafts and matting also!
One last comment, I would highly suggest buying now while they are offering a promo price with extras.