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No CC needed to dl free apps and for paid apps I use gift cards.
The 4th gen is a couple years old now and is no longer getting OS updates from Apple (iOS 6x was the last), but it works fine. Battery life suck on the 4th gen when doing anything with the screen on. I haven't encountered any apps as of yet that are iOS 7 only (& thus not compatible) and Apple has added a new "feature" to the app store where the last compatible version of apps are available to older OS devices although I don't recall all the details.
You don't need iTunes unless you want to transfer content via USB. For instance the only time I use it is to transfer/convert a WMA audiobook from OverDrive or load a few non-Audible books I own.
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