1. It is correct. On most of her airline's planes there is no connection between the devices and any network at 30000 ft. The receipt has no authorization #.
2. Do not assume that Internet access is universal. My son teaches high school grades 8 & 9 in a Montreal middle class area and 15% of his students have no web at home. I know from working with the NY City Dept of Education that over 100K of their students live in woman's or homeless shelters therefore they get 66% of their daily meals and 100% of their web access at their schools.
Her airline has wifi access but is it limited to select North American, Caribbean and International flights. Select International flights have faster wifi that would allow streaming.
3. She thinks that the airline may eat the denied charge but there may be some back room, land based group pumping out dunning letters to chase you and your wallet down.