Does iTunes 10.5.1 require internet to work?

(Quick background - 24" iMac (Core 2 Duo, late 2006 model) running OS X 10.6.8+, but no internet connection at home). Last Sunday I had lugged it to a local WiFi to do updates and check the Mac App Store. Downloaded the Snow Leopard Security update, Safari update, iTunes 10.5.1 upgrade (think that was all), got what I needed done, took the behemoth home. iMac worked fine the next day, but I didn't use iTunes then.
Yesterday afternoon, I fired up iTunes (first use of iTunes 10.5.1 since the update), and when it starts up it opens the window, then gives me the spinning beachball ('Not Responding' shown when I check the Dock icon)... Force quit, removed iTunes and re-installed 10.4.x from a previously downloaded dmg file. Start up iTunes - it gives me a message that it cannot read the library file because it's from a newer version of iTunes. :-( 
My question: Does iTunes 10.5.1 **require** that it have continuous/on-(iTunes')demand internet connection for it to function? If so, then until I get an internet provider at home (that doesn't require me to switch phone providers or cost me an excessive amount - as our cable company does), I will be staying with 10.4 iTunes until I move to where I can get affordable internet service.
So, does iTunes demand its way about having to have internet connection? Could be the downside of the much-touted iCloud and "sync/streaming to all your devices" promise. I certainly hope Apple will recognize (once again) that not everybody out there has affordable internet access/speedy connections.

Okay, when I get home I'll see about that (generally a good thing to do). But since I have gone back to iTunes 10.4.x, and (not being regularly connected to the internet), is there an advantage for me to upgrade to iT 10.5.x (until I get an internet connection at home)? The Security Updates I can see more reason for doing. What will I gain (now) from upgrading to iT 10.5.1, other than iCloud features? (My iPod Touch won't run iOS 5, by the way).
And (preferably with some detail) what do you suspect necessitates running the drive repair? I like to understand not only what to do, but some of the why(s).
Thank you for the information.

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