I think that would allow my machine to operate at it's best. And considering that I would be making a huge leap in OS (10.2-10.4) without all the steps in between, I feel like a clean imstall might be the most 'surprise free' method.
I doubt it. The upgrade process takes care of everything in-between 10.2 and 10.4, and Software Update will also prompt you to download and install other security updates if you need them, so you're not missing out on anything that you're required to have. You do need to be wary of accepting an install of iTunes or Safari 4.x if you have no need or desire for them.
"I acknowledge that my system meets the minimum system requirements for Qwest Connect® with MSN Premium or Windows Live. (Upon installation it will be determined which requirements your computer meets)."
To me that says that I must have MSN Premium or Windows Live. And if I don't then I will be S.O.L and loose what every money I have commited to the service.
Nonsense. I'm a Qwest DSL customer and I never had to agree to any such thing, either verbally, in writing, or via the Internet and my service works quite well. I've never had to deal with the Evil Empire yet. This is just an accounting manuever as part of their partnership with Microsoft in providing services to the majority of customers, who are poor, hapless Windoze users; it doesn't affect you in any way.
If I were you, I'd call them and order the service that way and just tell them at the outset that you aren't using Windows. They should be happy to accomodate you, and there is no software to install.