Which LaTeX distribution would you recommend for using on Linux from command line? I am looking for one with most complete coverage of packages.
You should install TeXlive.
Note some distributions like Debian derived ones (e.g. ubuntu) have a version of TeXlive in the package manager. This isn't a great option: it is old and it doesn't have all the packages you might need. Installing the one via the TUG website is much better. See this blog discussion for arguments.
TeXlive comes with a variety of useful things like
Install texlive2010, but consider installing it on its own partition. You may wish to update your Linux distri without re-installing texlive afterwards!
On the other hand I do not think it would be usefull to install texlive into your home directory.