I currently have an iPod Touch, I want to buy the Nexus 4, but don't want to get a plan (SIM Card) for a while. Will the device work like an iPod Touch/ Wifi capable, but no access to data away from Wifi/Call/Text.
Yes - all android devices will work without a SIM card, and can be connected to wifi for an internet connection.
EDIT: Just so people know, there is a setting in the build.prop file that determines whether or the not the device can be used without a SIM or not.
Most of the time this is set to allow it, however in rare cases it may be disallowed.
Some Android devices, mostly older ones, and CDMA2000 devices, will attempt to let you not use them without activation.
Usually the 'provision' application has a secret code that can bypass the 'mandatory' activation - e.g., on the Motorola Droid 2 Global it's upper left corner, upper right corner, lower right corner, lower left corner (the lower corners being ABOVE the software buttons, not the absolute corner of the screen) - do that and you can use the phone unactivated (for battery life considerations, put the phone in Airplane mode).
Newer devices, including the N4, should just let you skip the activation altogether; a lot of the Google applications will continually beg for Google Credentials, however, if you don't log in.