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You don't download levels. They're really streamed, I suppose.

Basically, you bring up the "Cool Levels" planet instead of the single player planet, select a level, and start playing. Online levels load about as fast as single player levels.

I went into the beta expecting to spend the entire time creating stuff. I ended up spending 90% of my time just playing other people's levels with friends. Even crappy levels were pretty fun, because when the level would break (and it usually would), me and whomever I was playing with would just start messing around, placing stickers everywhere, slapping each other, dragging each other around, etc.

Buy it.  You won't regret it.  The offline experience alone is worth it.