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Not 100% sure as I don't own a special offers Kindle but yes turning the WiFi on and connecting to the Amazon servers will update the ads/special offers that the Kindle displays instead of screensavers. They won't ever disappear (immaterial of whether you keep it in Airplane Mode or not), unless you choose to pay the additional cost ($20 I think?) to remove the special offers. If you don't reconnect via WiFi it'll probably still show something but there will be a message advising you to turn the WiFi on to get the latest offers.
As for registering, no it shouldn't wipe out the content you have already loaded onto the Kindle, they'll still be there in the documents folder. You don't have to register, you can never turn the WiFi on and continue to sideload books, but you won't be able to sort them into collections, as this feature is only enabled once the Kindle is registered. Obviously your daughter won't be able to buy and download books directly to her Kindle from Amazon either. If she buys any books from Amazon as they'll be registered to her Kindle4PC, she'd need to learn how to 'disinfect' them to read them on her Kindle.
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