Using Nexus 4 as a Media Player?

I'm relatively new to this forum, so sorry if I sound ignorant or anything. I was hoping to get some advice on whether or not I should buy a Nexus 4 and use it as everything but a phone. I have an aging Ipod Touch 1st gen and a Droid Razr m (great phone btw). I fell in love with Android, but I hate waiting for Verizon to update my phone. I'm still on 4.1.2!

I found it to be quite useful to have my ipod around in cases where I'm strictly listening to music, or need to send an email out if my phone was dead.

With the 5th gen Ipod touch costing $299 and the Nexus 4 now being $199 I'm considering it more than ever. I'm not interested in getting a plan for it until my contract is up, but just wanted to know what everyone thinks, and if the phone is usable without a sim.