I have heard that Apple has allowed some people to redownload music that they have purchased in the past but in my opinion, it would be easier and faster to acquire them by other means. While not exactly by the book, you did pay for the albums.
iTunes doesn't keep address book information. That would have synced to your address book on your computer. Windows address book, outlook, OS X address book etc. I can't remember if it os set to sync by default though.
That's not a bad deal for an iPhone 4.
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