I bought Rage for PC at gamestop today. I haven't opened it because on my way home i thought of this and want to make sure of this before i open it. If i buy the retail version, I can install the game via the discs and not have to download it from steam right? My internet is broken at the moment so it would take me days to download this massive game.
You will also want to get either the config files from online (try these: http://forums.steampowered.com/forums/showthread.php?t=2156408 for best experience IMO), or to at least download the patch via Steam that addresses the original horrific texture issues like popping/streaming and screen tearing.
Good luck - you don't "need" the internet for anything other than activating though.