If you're looking to use it as a live mic too, then, yeah, the sm58. If you only need it for recording purposes, for about the same price as a 58, (about $100) you can get an MXL package that has a large diaphragm studio mic and a small overhead condenser mic.
Applications:
Acoustic guitar - Have the large diaphragm mic in front of the soundhole about a foot away, and the small condenser angled aiming towards where the neck meets the body.
Piano - With the piano top open, have the large diaphragm mic up over it more towards the lower section and the small condenser for the high strings.
Vocals - Just use the large diaphragm. Use a pop filter with it.
Drums - Large diaphragm in front of kit about 1 foot from floor and 4 feet from Kick drum. Small condenser mic over head to pick up cymbals, snare and toms more.
Guitar amp - Just the large diaphragm about 2 or 3 feet in front of amp, but you could add the small condenser if you want more control of higher end.
These are just some examples, nothing written in stone. And this is just for doing the instruments one at a time as the large diaphragm mic will pick up everything in the room (including mouse farts)
Hope it helps some.