If I buy a used iPhone 4 without a data plan will the GPS work?

I live in Canada and am a complete newbie when it comes to cell phones and data plans. I am not interested in having or paying for cellular telephone capability.
I've been using the 64 Gb iPod Touch 4 but detest its 0.7 Mb still camera and bemoan its lack of GPS.
Now that the iPhone 4S has been released, there are many folks selling their older iPhone 4s. I'd love to use one of these older iPhone units with their better camera and GPS capability, but don't want to pay for a data plan, nor am I willing to pay $850 for an unlocked iPhone 4S. I'm happy to continue using wireless internet and don't need a cell phone.
Being a newbie when it comes to data plans and cell phones, if I purchase a used iPhone 4 from someone:
1. Does it need a SIM card (activated or not) to use the GPS on it? If yes, must a deactivated SIM card be provided by the seller or where can I obtain one?
2. Does the iPhone 4 need to be on a cellular plan to use the GPS?
3. I can use a deactivated iPhone 4 on WiFi only as I've been doing with the iPod Touch 4, correct?
4. If I can use a deactivated, non-contract iPhone 4 on WiFi only, will the GPS work and allow me to use GPS-enabled apps? If yes, does it somehow still "tie"into available local cell networks to achieve a position without me paying for (or being registered for) cellular access?
5. Can future iOS upgrades (say to iOS5) still be performed on a deactivated iPhone 4 without a cell plan?
6. Do I need to purchase the iPhone 4 from a Canadian seller given my above questions? What other questions do I need to ask of the seller when looking for a used iPhone 4?
Thanks in advance for any help with my newbie questions!

Thanks for that, Paulfromwallasey. I live in a rural area without many cell towers and with WiFi only in my home. I do use offline maps (topographical and street maps) on my iPod Touch 4 outdoors (not needing a signal, WiFi or cellular). I also have a hand-held Garmin GPS receiver but would rather use the GPS in the iPhone (its positional accuracy, while likely being lower than that obtained from my Garmin, is likely sufficient for my needs).
I guess that one of the questions that I was asking is if I were to purchase a used iPhone 4 from someone, and the SIM card have been removed, would the device's GPS still work with GPS-enabled apps (albiet without the cellular-assist)?
Can any pay-as-you-go SIM card be purchased for and used in a deactivated iPhone4? Would this even be necessary for the GPS?
Thanks again.

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