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
tlmgr for updating packages from CTAN and so on. This way you always have the most up to date packages.
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.