Yes, I use mine all the time without a SIM. It works fine on wifi only. I switch my SIM back and forth between my GNote and skyrocket. When traveling I use my GNote as a wifi tablet/ Netflix watching marathon machine!
It does require a sim to check for updates and access Samsung apps.
Better than galaxy player because it is high res and a better screen and maybe you like the pen. I have no use for any current tablet since I bought a Note.
You do need network access for the Samsung apps that you can get but NOT for updates. I have updated my GNote several times with WIFI only. You could just pop a friends SIM from ATT, configure your apps. I do not know if you need market access to use the apps after downloading them?
I am a post paid account with a 4G LTE SIM that I put into my GNote to get HSPA+ speeds. There are several threads that talk about using a pre paid SIM in a GNote.
To be sure it can be done however, I am not sure you would get the same speeds as many say the speeds are less with a pre paid account.
I with T-Mobile and just pop my Hercules sim into the note when I know I wont be using heavy data. You still get edge so texts and email come through no problem. Sometimes I use the SII as my primary and turn on wifi sharing (Juggernaut 4.1) to use the Note as a connected tablet.