I used the same grinder with a Silvia for about 6 months with no real problems. Mine was the starbucks variant and I was grinding on the finest setting till I modded it to grind a bit finer. (lots of info on this mod via google) Apparently *$ grinders are set to grind a bit coarser by default, yours may not. I sold it to a friend with a lever machine and its still going strong two years later.
I eventually upgraded to a mazzer but the difefrence in the cup was subtle.
Id say go the Silvia with a plan to upgrade your grinder in the next 12 months.
Ive also had a Gaggia Baby and rate the Silvia well above the aluminium boilered Gaggia.