Difficult to know where to start here.
1. Public WiFi can be free, MacDonalds, Barnes & Noble, Starbucks, etc., but with public WiFi there is the danger of other people "overhearing" your WiFi conversations. With the iPod Touch this really does not present a real problem as long as you do not do your internet banking on it.
2. You do not pay for WiFi service, it is put out there by nice citizens, see above, and is available wherever there is a "hotspot"
3. At work, just connect to the WiFi with the password and you are good to go.
4. "Out and About", will depend on finding hotspots, see #1
5. The 3G/4G stuff has nothing to do with the WiFi you are talking about.