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You don't need wifi to set up a Kobo e-ink reader, but it's generally quicker and easier than using the Kobo Desktop to do it. Library? Cafe? Bookshop? Shopping centre? Friend? There's free wifi all over the place these days, unless you're truly in the back of beyond. Something like the Glo might suit your needs nicely.
I don't know anything about the Arcs - did it say you should be able to set it up with Kobo Desktop? If so, I'm guessing you got a faulty Arc, or a faulty cable, or you have a faulty USB port. Which operating system is on your home computer?
Choosing between Kobo and Kindle can be pretty much a wash, and depends on whether you prioritise things like customising text display, managing collections with your computer, customer service, etc.
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