anyone who uses a gun knows there is a chance of this happening. I've had squibs and over charges with brand new factory ammo in 9mm, .40 and even in .22's. I've had one squib with my own reloads (and not in my gun either, but in a gun I was trying out). I've also seen factory Winchester with no primer flash holes and even bullets loaded upside down.
Good to hear you didn't get hurt and that your gun only needs minor repairs.
As for the Sig, I'd have to say go for the full meal deal and get the 226 stainless with rail. I met a couple guys at the last IPSC Qualifiers with them, they are gorgeous guns, and got to try one of them out on Saturday night. Talk driver is an understatement, and the heavier frame absorbs recoil quite nicely. Probably the only thing I could say bad about them is that they are heavy and might not be as quick to move from target to target, but then again a lot of that depends on the shooter.