In this day and age, typically it is better to update to ensure you have the latest security fixes, preventing bad people from accessing your data.
Though, your no update policy can help in some cases, I don't think it is the safe way to go.
iOS 11.4.1 is also very old. July 9, 2018. That can be upgraded to 12.4.7 with the latest security fixes, though you probably don't need them unless you use the browser (Safari) on the iPod Touch to access web sites. Then I highly recommend the updates. The other reason to update is I can find screen shots of iOS 12 easier than iOS 11 to see what you are looking at.
No the iPod Touch is not connected to the internet if you have it connected to the computer via USB.
The reason this is different is that is a "smart device" closer to an iPhone than an iPod.
To use any iPod Touch you will need to have a couple things:
- WiFi or cellular data
- An Apple ID, since you don't have one you can create one during the set up process
Yes the iPod Touch uses an app (Music) to play your music and it
requires an Apple ID to be logged in to use it.
This allows you to buy Music from Apple (you can play in iTunes or in the iPod Touch or sync to iPod) or listen to Apple Radio stations (I have never used this before today, so it looks like there is an audio stream called Beats1, with ads for free (as long as you don't have low data limits on your WiFi) as well as the opportunity to subscribe to Apple Music service for $10-15/month for broadcast radio and 60 million songs selection. I don't think you want Apple Music (even the 3 month free trial) as it screws up all your local music and stops you from syncing music to your iPods. A total waste of money in my book.
With an
Apple ID (must have a credit card associated with it, even if you never buy anything) you can enable the Music app, and get updates from Apple for the apps on your iPod Touch. The iPod Touch 6th generation was released in July 2015, so it is already 5 years old. It is stuck on iOS 12 and can't upgrade further. You can get apps for it now like the Music app that will work as long as you can power the device. iTunes should be able to sync with the iPod Touch for many years to come, as it is always backwards compatible with older devices. (My iPod Color can still sync with the current iTunes). Other apps made by non-Apple developers may stop working in a 5-8 years from now. I have an iPad 4 on iOS 9 that has had several apps stop working, but most still work.
To create an Apple ID the iPod Touch must be connected to the internet through WiFi or cellular data network.
I am going to guess you didn't get an cellular enabled iPod Touch and/or you didn't buy a SIM card for it.
Do you want to get this set up to have online access, Apple ID and updated?
Do you have WiFi?
I don't want to push you into something you don't want to do. Hopefully there is enough information here to make a decision.
If you want to continue using this device, I can walk you through updating the iOS on the iPod Touch, connecting to WiFi, and help create your Apple ID. Then you can use the iPod Touch Music app.