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as jackie_w said you don't need to have wi-fi on on your Kobo. When I initially got my Kobo Aura HD, I did register it through wi-fi. After doing that, I turned wi-fi off and haven't had it on since. I use Calibre to manage my library and send my books to my Kobo. I've never bought an actual book from Kobo--all my books are side-loaded ePubs that I convert to KePub while uploading to the Aura HD through the Calibre Kobo extended drivers.
But as David pointed out the "processing content" is normal and no information is being sent to Kobo while this is going on. It's simply the Kobo writing information about books you've added or deleted to the Kobo database. If you've made significant changes to what's on your Kobo, processing content can take quite a while.
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