You'll never regret Nimzowitch's My System as a decent intro into positional play, also if you're quite happy investing money into books, Seirawan's Play Winning Chess series is fantastic, the tactics one would be well worth your money.
I think observing other people's games is a very good practice for two reasons.
1) You can't make a move so you can consider the impulsive moves then decide if they're good or bad without automatically making them. This has always been my biggest problem (especially otb), and it's only recently I've managed to almost wipe them out (again otb).
2) I also think it can be more beneficial than reading through master games because there isn't that temptation to go to the next move, although if you get something with good analysis (I like Alekhine's personal collections of games, even if they are a little old now) it's a toss-up. To start out, before you start analysing your own games I think it's worth getting at least one collection of well annotated games and seeing why the moves were made (as well as reading through a tactics book). Actually make the moves on a board and look at the positions before moving onto the next move and see if you can work out why the move was made before reading the annotations.
another question: if you're not a good player to begin with, is blitz completely useless?
Not necessarily. If you're testing a new line / opening, blitz is a great way to help you quickly adapt to its ensuing variations.