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No you need a broadband or DSL WiFi or ethernet connection and can not connect through USB port
The iPhone 3G was released on July 11, 2008 The 3Gs was released on June 19, 2009 and was an upgrade
Yes you can. I have a 3G mobile hotspot by at&t called the mifi 2372, and it works GREAT for Xbox live. My little brother has It for ps3 and actually has nat type 2. If you play call of duty, there will be little lag, but still great, fast connection. In any call of duty games, the most bars you have is 3 unless your host, then you have 4 in gaming. I live out in the country, and I have VERY slow Hughes Net which doesn't provide UnUp (universal plug in play, for gaming) but then I got the mifi 2372 and it is great!! Other services such as Verizon and sprint also have the mifi 2372. Hope this helps!!
I run at 115.2kbps, 75%of the time it works great for heavy gaming but its a 3G modem so it is hard to keep a signal ware I live but 115kbps and up is grate for gaming even high pace first person shooter. If this is a wired connection you should be grate. (Platform: PS3 Game: TFWFC). needing at least 1mb or more of speed is BS.
The YouTube app itself is free to download and to use, however both the YouTube app and website can consume large amounts of data. This shouldn't be a problem if you're using the device when it's connected to your WI-FI at home. But exercise caution when using this app on your mobile data (ex: 3G, 4G). If you don't have an unlimited mobile data plan, over use of the YouTube app on you mobile carrier's signal can incur additional data charges.