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You can in fact use the Kobo while it is charging. Power the device on, and connect the USB cable. It'll ask you to connect to the computer to manage the device. Select "Cancel" and it'll go back to the main menu and allow you to charge and use it at the same time.
You can get rid of the advertisements in two ways. One way is to replace it with your shortlist, the other is to install Kobo tweaks (Google for it), although Kobo tweaks need to be re-installed whenever you restart the device (just open up the Library). This is still tedious though; you can always revert to an earlier firmware version if you'd like.
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