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Re: what phone?
Almost every smartphone on the planet has wifi. In fact, I can't think of an example of a smartphone that doesn't have wifi equipped, though I suppose some obscure model might exist that doesn't have an internal wifi card. The reason for this is simple: providers want you to use data on wifi as much as possible so your traffic isn't taking up space on their network. Any phone you buy direct from Straight Talk will have wifi.
As far as the iPhone vs. Android argument, you're stepping into a debate that will be argued until the end of the internet I'm pretty sure lol. Android smartphones and the iPhone are very comparable and more expensive Android phones are also comparable in build quality to the iPhone. If you've never owned a smartphone before, you will probably be happy with either choice as both iPhones and Android smartphones are incredibly sophisticated devices compared to traditional phones.
If you already have your data on one of the two competing eco-systems (Apple/OS X or Google) then that is a consideration. IE if you already use iTunes or whatever, the iPhone 4 might be the way to go because you pretty much just have to sign into iTunes on your phone and you'll be all set. If you don't have any experience with either one or you don't use Google for much more than email/web searching, they're going to be both about the same for you. Ask yourself which phone is affordable for you and which one you like the physical appearance of.
Straight Talk has an option where you can bring in your own phone when you start up with their service. I haven't tried this myself but it is nice to know the option exists so if there is a phone you really have your heart set on, even if Straight Talk doesn't sell it, you can probably still bring it with you. (Not all phones are compatible, so call them first. For the technical details, GSM phones are usually not a problem but most CDMA phones can't be ported) They also directly sell some of the nicer Android-powered phones. I recall over the holidays they were heavily marketing the Samsung Galaxy SII. This phone is a little old now but it used to be one of the flagship phones for Android and is still a very good device, especially if you're a little budget conscious.
I will say that knowing what I know now, if I wasn't tied up with my Verizon contract I would consider bringing the Nexus 4 or the Samsung Galaxy S3 to Straight Talk. They're both great phones that are comparable to the iPhone and you can save a lot of money on those prepaid networks if you are able to connect to hotspots when you mainly use data.
Sorry for rambling, hope this is helpful :-)