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If you're on the device and looking at the Kobo store then yes, you can download the books straight to your device with no computer necessary.
As for which free books Kobo offers, I'm unsure as to how much of the Gutenberg library they redistribute. One nice thing: You can go to the Gutenberg website with the Kobo web browser (included as an Extra on the Mini) and download epubs straight to the Mini.
I have never looked around for different languages, as I only read English.
I have the Kobo Touch, and absolutely love it. As long as you don't mind the smaller screen size and lack of expandable memory (no SD card slot) I'm sure you'll enjoy the Mini, especially if that $49 price shows up.
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