It wouldn't have downloaded all you books from the server. When you do a setup via WiFi, only a few books are downloaded. I think it's the five most recently read that haven't been finished.
If you want to pick the firmware version, use of the Kobo desktop app to do the setup. It will download the latest firmware, but you can replace the files with the firmware you want to use. Or remove them completely. It will start downloading all the books, but, it has a skip button.
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