IPhone 4/4S/5 questions

1. If Wi-Fi is available (e.g. a home or free public network), is connecting to it and using the internet via that network from the iPhone always free, regardless of SIM or phone network status? Some sources say that this is the case, but some iPhone deals say something like '12 months Wi-Fi free'. Would appreciate clarification.
2. What UK-based networks would you recommend for someone who would like (1) Pay as you Go for the time being but might want the option to switch to a monthly basis later, and (2) the option to unlock the iPhone in the future in case of wanting to move it to another network?
3. In terms of iPod capabilities (software, not necessarily hardware), does the iPhone have all of the options that the newest iPod Touch does, or is it missing some things?
This is with regards to iPhone 4, 4S, or 5 (so please account for each of those models), for use probably primarily in the UK atm. Thanks!

Also, for those who switched between iPhone 4/4S and 5, would you say that the iPhone 5 is worth the extra cost? At the moment, I'm primarily looking to use the iPhone for the phone aspect, music listening, Wi-Fi internet browsing, and possibly some apps.

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